2026 Kentucky Welcome Home Grant Is Closed: What Home Buyers Can Do Now

Updated August 1, 2026

What Was the Kentucky Welcome Home Grant?

The Kentucky Welcome Home Grant was a popular down payment and closing cost assistance program offered through participating Federal Home Loan Bank of Cincinnati member lenders.

For 2026, eligible buyers could receive grant funds generally ranging from $10,000 up to $20,000 to help with:

• Down payment
• Closing costs
• Prepaid items and escrow setup, when allowed by program rules

The program was highly competitive because funds were limited and reserved on a first-come, first-served basis. Once the available funding was reserved, the program closed.

Is the 2026 Kentucky Welcome Home Grant Still Available?

No. The 2026 Welcome Home Program is now closed for new funding reservations.

This means Kentucky buyers should not build a purchase strategy around receiving the Welcome Home Grant for the remainder of 2026 unless they already had funds reserved through a participating lender before the program closed.

If you are shopping for a home now, you need a backup plan that works with funds currently available.

Why Did the Welcome Home Grant Run Out So Fast?

The program usually moves fast because demand is high and the funding pool is limited.

Several factors cause the funds to disappear quickly:

• The grant can provide a large amount of help, up to $20,000.
• Buyers must generally have a signed purchase contract before funds can be reserved.
• Reservations are first-come, first-served.
• Many buyers across Kentucky, Ohio, and Tennessee compete for the same FHLB Cincinnati funding pool.
• Not every buyer is prepared with a complete pre-approval file before opening day.

The practical lesson is simple: for future grant rounds, buyers need to be pre-approved, document-ready, and working with the right lender before the program opens.

What Were the Main 2026 Welcome Home Grant Requirements?

Although the 2026 program is now closed, the eligibility rules are still useful for buyers who want to prepare for future grant funding.

Typical Welcome Home requirements included:

• Total household income generally at or below 80% of the applicable Mortgage Revenue Bond income limit.
• A fully executed purchase contract before grant funds could be reserved.
• At least $500 of the buyer’s own funds contributed toward the transaction.
• Primary residence occupancy.
• Eligible property type, such as a single-family home, townhome, condominium, qualifying manufactured home, or owner-occupied 1-4 unit property.
• First-time homebuyers generally needed to complete approved homebuyer education before closing.
• A five-year retention requirement, meaning sale, refinance, foreclosure, or ownership changes during the retention period could trigger notice requirements or possible repayment.

What Should Kentucky Home Buyers Do Now?

If you missed the 2026 Welcome Home Grant, you still may have options. The best replacement strategy depends on your credit score, income, county, debt-to-income ratio, property type, and how much money you have available for closing.

1. Kentucky Housing Corporation Down Payment Assistance

Kentucky Housing Corporation offers down payment assistance through KHC-approved lenders. The Regular Down Payment Assistance Program can provide assistance up to $12,500 in $100 increments.

This is not the same as the Welcome Home Grant. KHC Regular DAP is structured as a repayable second mortgage, currently shown by KHC as a 15-year term at 4.75%.

KHC assistance can be a strong option for buyers who qualify for a KHC first mortgage and need help covering down payment, closing costs, and prepaid items.

2. FHA Loan With Seller-Paid Closing Costs

FHA loans remain one of the most flexible options for Kentucky buyers, especially buyers with limited cash, higher debt-to-income ratios, or lower credit scores.

FHA typically requires a 3.5% down payment for buyers with qualifying credit. The seller may be able to pay part of the buyer’s closing costs and prepaid items, subject to FHA limits and contract negotiation.

This can be a practical replacement strategy when grant funds are no longer available.

3. USDA Rural Housing Loan

USDA loans may allow 100% financing for eligible buyers purchasing eligible homes in USDA-approved rural areas.

USDA can be a strong fit for Kentucky buyers outside major metro areas who meet household income limits and property eligibility rules.

4. VA Loan for Eligible Veterans and Service Members

VA loans can offer 100% financing with no monthly mortgage insurance for eligible veterans, active-duty service members, and certain surviving spouses.

For qualified buyers, VA financing can be one of the strongest no-down-payment mortgage options available.

5. Conventional 3% Down Options

Some conventional loan programs allow as little as 3% down for eligible first-time homebuyers or certain income-qualified buyers.

Conventional financing may be especially competitive for buyers with stronger credit scores because mortgage insurance may be lower than FHA mortgage insurance in some cases.

6. Seller Concessions

Do not overlook seller-paid closing costs. In many cases, the right purchase contract structure can reduce the amount of cash a buyer needs at closing.

Seller concessions may help cover closing costs, prepaid taxes, homeowner’s insurance, escrow setup, and sometimes interest rate buydown costs, depending on the loan program.

Can You Combine KHC Assistance With FHA, VA, USDA, or Conventional Loans?

In many cases, KHC down payment assistance can be paired with a KHC first mortgage using FHA, VA, USDA, or conventional financing, subject to KHC and lender guidelines.

The key is that the loan must be structured correctly from the beginning. You generally cannot close with a non-KHC first mortgage and then add KHC assistance later.

Welcome Home Grant vs. KHC Down Payment Assistance

Program	Type of Help	Repayment	Current Status
2026 Welcome Home Grant	Grant for down payment and closing costs	Generally no monthly payment, but retention rules may apply	Closed for 2026
KHC Regular DAP	Down payment assistance loan	Repayable second mortgage	Available through KHC-approved lenders, subject to guidelines
Seller Concessions	Seller-paid closing cost help	No repayment by buyer, negotiated in contract	Depends on seller and contract terms

Best Strategy If You Missed the 2026 Welcome Home Grant

The best strategy is to get a real pre-approval review and compare your options side-by-side.

A proper review should look at:

• Credit score
• Income and employment history
• Debt-to-income ratio
• Cash available for closing
• County income limits
• Property type
• FHA, VA, USDA, conventional, and KHC eligibility
• Whether seller-paid closing costs can help reduce cash to close

Many buyers assume they cannot buy because one grant closed. That is not always true. The Welcome Home Grant was helpful, but it was not the only path to homeownership in Kentucky.

How to Prepare for the Next Welcome Home Grant Round

If Welcome Home funding returns in a future year, buyers should prepare early.

Here is the practical checklist:

• Get pre-approved before the program opens.
• Have pay stubs, W-2s, tax returns if needed, and bank statements ready.
• Know your household income before you shop.
• Work with a lender who understands FHA, VA, USDA, conventional, KHC, and grant programs.
• Complete homebuyer education early if you are a first-time homebuyer.
• Keep at least $500 of your own funds documented in your bank account.
• Be ready to make an offer quickly when the right home becomes available.

Frequently Asked Questions

Is the Kentucky Welcome Home Grant still available in 2026?

No. The 2026 Welcome Home Program is now closed for new reservations.

How much was the 2026 Welcome Home Grant?

The 2026 program offered grant assistance generally ranging from $10,000 up to $20,000 for eligible buyers.

Was the Welcome Home Grant only for first-time homebuyers?

No. First-time buyer status was not always required. However, first-time buyers generally had to complete approved homebuyer education before closing.

Can I still get down payment assistance in Kentucky?

Possibly. Kentucky buyers may still be able to use KHC down payment assistance, seller-paid closing costs, FHA, VA, USDA, or conventional low-down-payment financing.

Is KHC down payment assistance a grant?

KHC Regular DAP is not the same as the Welcome Home Grant. It is structured as a repayable second mortgage.

Can I buy a Kentucky home with no money down?

Some buyers may qualify for no-down-payment options such as VA or USDA loans. Some buyers may also combine assistance programs and seller concessions to reduce cash needed at closing. Approval depends on credit, income, property, and underwriting guidelines.

What credit score do I need?

Credit score requirements depend on the mortgage program and lender guidelines. KHC currently lists a 620 minimum credit score for its main eligibility requirements. FHA, VA, USDA, and conventional loans may have different lender overlays.

Ready to Review Your Kentucky Homebuyer Options?

If you missed the 2026 Welcome Home Grant, do not assume you are out of options.

Call or text Joel Lobb at 502-905-3708 or email kentuckyloan@gmail.com to review FHA, VA, USDA, conventional, KHC, and seller-concession strategies for Kentucky homebuyers.

Joel Lobb
Mortgage Loan Officer
NMLS #57916
EVO Mortgage | Company NMLS #1738461
Equal Housing Lender

This information is for educational purposes only and is not a commitment to lend. All loans are subject to credit approval, income verification, property approval, program guidelines, funding availability, and underwriting requirements. Program terms, assistance amounts, interest rates, purchase price limits, income limits, and funding availability can change without notice.

Not affiliated with or endorsed by FHA, VA, USDA, Kentucky Housing Corporation, Federal Home Loan Bank of Cincinnati, or any government agency.

Sources and Program References

• Federal Home Loan Bank of Cincinnati Welcome Home Program: https://www.fhlbcin.com/housing-programs/welcome-home-program/
• Kentucky Housing Corporation Down Payment Assistance: https://www.kyhousing.org/Homeownership/Future-Homebuyers/Pages/Down-Payment-Assistance.aspx
• Kentucky Housing Corporation Eligibility: https://www.kyhousing.org/Homeownership/Future-Homebuyers/Pages/Eligibility.aspx

Explore Kentucky Home Loan and Assistance Programs

• Kentucky FHA Home Loans – Low down payment options with flexible credit guidelines
• Kentucky USDA Home Loans – 100 percent financing in eligible rural areas across Kentucky
• Kentucky VA Home Loans – Zero down payment options for veterans and active-duty service members
• Kentucky Housing Corporation (KHC) Programs – Down payment assistance options paired with FHA, VA, USDA, and conventional loans

Income Limits by County (80% MRB)

Income limits are based on 80% of Kentucky Housing Corporation’s MRB limits (effective June 23, 2025; confirm updates at opening). Household income includes all adults living in the home. Use the table below for quick reference—limits vary by county and household size (1-2 persons vs. 3+).

County	80% Limit (1-2 Persons)	80% Limit (3+ Persons)
Adair	68064	79408
Grant	76416	89152
McLean	79435	91350
Allen	75264	87808
Graves	68064	79408
Meade	79339	91240
Anderson	78379	90136
Grayson	68064	79408
Menifee	80832	94304
Ballard	77280	90160
Green	68064	79408
Mercer	78683	90486
Barren	68064	79408
Greenup	74688	87136
Metcalfe	80832	94304
Bath	80832	94304
Hancock	79611	91553
Monroe	68064	79408
Bell	80832	94304
Hardin	76992	89824
Montgomery	75072	87584
Boone	89440	102856
Harlan	80832	94304
Morgan	80832	94304
Bourbon	81920	94208
Harrison	79675	91626
Muhlenberg	72768	84896
Boyd	74688	87136
Hart	68064	79408
Nelson	79227	91111
Boyle	77568	90496
Henderson	77664	90608
Nicholas	70656	82432
Bracken	89440	102856
Henry	77771	89437
Ohio	68064	79408
Breathitt	80832	94304
Hickman	76416	89152
Oldham	77771	89437
Breckinridge	73440	85680
Hopkins	72096	84112
Owen	75456	88032
Bullitt	77771	89437
Jackson	80832	94304
Owsley	80832	94304
Butler	69600	81200
Jefferson	77771	89437
Pendleton	89440	102856
Caldwell	70080	81760
Jessamine	81920	94208
Perry	80832	94304
Calloway	79200	92031
Johnson	80832	94304
Pike	80832	94304
Campbell	89440	102856
Kenton	89440	102856
Powell	80832	94304
Carlisle	73632	85904
Knott	80832	94304
Pulaski	68736	80192
Carroll	68736	80192
Knox	80832	94304
Robertson	80832	94304
Carter	80832	94304
Larue	76992	89824
Rockcastle	80832	94304
Casey	80832	94304
Laurel	69312	80864
Rowan	80832	94304
Christian	79195	91074
Lawrence	80832	94304
Russell	69408	80976
Clark	81920	94208
Lee	80832	94304
Scott	81920	94208
Clay	80832	94304
Leslie	80832	94304
Shelby	84640	97336
Clinton	80832	94304
Letcher	80832	94304
Simpson	74496	86912
Crittenden	79008	92068
Lewis	80832	94304
Spencer	77771	89437
Cumberland	80832	94304
Lincoln	68064	79408
Taylor	74016	86352
Daviess	79435	91350
Livingston	70848	82656
Todd	73824	86128
Edmonson	79584	91958
Logan	77568	90496
Trigg	79195	91074
Elliott	80832	94304
Lyon	78939	90780
Trimble	79296	92013
Estill	80832	94304
Madison	79083	90946
Union	73440	85680
Fayette	81920	94208
Magoffin	80832	94304
Warren	79584	91958
Fleming	80832	94304
Marion	70944	82768
Washington	78987	90835
Floyd	80832	94304
Marshall	79755	91718
Wayne	80832	94304
Franklin	78507	90283
Martin	80832	94304
Webster	68928	80416
Fulton	68064	79408
Mason	68736	80192
Whitley	80832	94304
Gallatin	89440	102856
McCracken	78795	90614
Wolfe	80832	94304
Garrard	73152	85344
McCreary	80832	94304
Woodford	81920	94208