Kentucky down payment assistance, from $12,500 statewide help to a new shared-appreciation option.
Kentucky Housing Corporation programs, Louisville Metro assistance and national DPA—with current credit-score and repayment rules explained.
Reviewed September 11, 2026 • Joshua Dobson, NMLS #190260
Quick comparison
| Program | Potential assistance | Published min. FICO | Repayment/Forgiveness | Biggest catch |
|---|---|---|---|---|
| Kentucky Housing Corporation Down Payment Assistance | Up to $12,500 in $100 increments | 620 government / 660 conventional | 4.75% fixed rate, amortized over 15 years under current KHC FAQ | This is not a grant or deferred-forgivable second—it carries a payment and interest. |
| KHC Shared Appreciation Mortgage (SAM) | Up to 25% of purchase price or appraised value | First-mortgage/program specific; KHC publishes 620 government / 660 conventional minimums generally | No monthly SAM payment; original SAM principal plus KHC's agreed share of appreciation is due at a maturity event | Up to 25% assistance is not a grant—KHC receives a corresponding share of future appreciation, and the original SAM principal remains owed even if the home declines in value. |
| KHC First-Mortgage Programs + DPA | Can pair eligible KHC mortgage with up to $12,500 DPA | 620 FHA/VA/USDA-RHS; 660 conventional | DPA repayment described above | The DPA's second-mortgage payment must be included when judging affordability, not just cash-to-close. |
| Louisville Metro Down Payment Assistance | Up to 20% of purchase price, maximum $30,000 | No universal minimum published on current City page; credit qualification required | After required 5–10 year occupancy period, 50% is forgiven; remaining balance is due upon sale | An eligibility letter does not guarantee funds will still be available when the buyer finds a home. |
Kentucky Housing Corporation Down Payment Assistance
Kentucky Housing Corporation currently offers up to $12,500 toward down payment and closing costs for eligible KHC first-mortgage borrowers. The assistance is a separate second mortgage.
KHC's current FAQ states the DPA is repayable at 4.75% fixed interest over 15 years. KHC also notes the $12,500 amount is a temporary increase, so buyers should verify the amount at reservation.
Published minimum FICO: 620 government / 660 conventional
KHC Shared Appreciation Mortgage (SAM)
Launched in July 2026, KHC's Shared Appreciation Mortgage can provide up to 25% of a home's purchase price or appraised value as a 0% deferred second mortgage.
In exchange, KHC receives an agreed share of future appreciation. The initial phase is limited to first-time buyers purchasing eligible new construction, including certain newly built manufactured homes and owner-occupied two-unit properties. KHC currently applies its standard $566,354 purchase-price limit to SAM.
Published minimum FICO: First-mortgage/program specific; KHC publishes 620 government / 660 conventional minimums generally
KHC First-Mortgage Programs + DPA
KHC currently publishes a maximum home purchase/loan-program price of $566,354. Government options publish a 620 minimum score, while Fannie Mae and Freddie Mac conventional options publish 660. First-time and repeat buyers can use many of these products, subject to income and other program limits.
Published minimum FICO: 620 FHA/VA/USDA-RHS; 660 conventional
Local Kentucky programs worth checking
Louisville Metro Down Payment Assistance
Louisville Metro's current Fall 2026 program offers up to 20% of the purchase price, capped at $30,000. The City describes the assistance as a 0% partially forgivable loan.
The program reopened on August 17, 2026 and is accepting applications only while funding remains. Buyers must meet income limits, complete HUD-approved counseling and satisfy Metro's property/payment requirements.
Published minimum FICO: No universal minimum published on current City page; credit qualification required
National programs Kentucky buyers should also check
National Homebuyers Fund
NHF multi-state assistance can be compared with Kentucky Housing Corporation and local programs. Current participating-lender terms control FICO, pricing, assistance and repayment.
Published minimum FICO: product/lender specific
Chenoa Fund
Chenoa Fund provides FHA down-payment assistance through approved lender partners. Current matrices control credit, pricing and second-mortgage terms.
Published minimum FICO: product/lender specific
Kentucky's biggest DPA lesson
Kentucky has two very different statewide assistance structures. KHC's regular DPA is a repayable 15-year second mortgage, while the new SAM program is a 0% deferred shared-appreciation second for qualifying first-time buyers of new construction. The dollar amount alone does not tell you which is cheaper long term.
Let Josh compare the available programs.
Send the city/ZIP, purchase price, credit range, household income and first-time-buyer status.
Official sources
KHC — Program Grid / Tools and Resources
KHC — Mortgage FAQs
KHC — Shared Appreciation Mortgage
KHC — SAM Launch Announcement
KHC — Loan Programs
KHC — Eligibility
Louisville Metro — Down Payment Assistance Program
Louisville Metro — FY26 DPA Handbook
National Homebuyers Fund
Chenoa Fund