Welcome Home Program in Kentucky 

2025 Welcome Home Program alternatives—KHC, USDA, FHA, and Louisville Metro Down Payment Assistance

KHC, USDA, FHA, and local programs as options after the 2025 Welcome Home Program reached capacity. I can break down what’s available based on current info. Let’s assume you’re in Kentucky. This is because KHC is Kentucky Housing Corporation. However, if you’ve got a specific location or situation in mind, just let me know.

KHC (Kentucky Housing Corporation) offers down payment assistance (DPA) up to $10,000. This is provided as a second mortgage for first-time or repeat buyers using a KHC first mortgage. It’s repayable over 10 years at a fixed rate (around 3.75% last I checked, though rates can shift).

You’d need a minimum credit score of 620 for FHA, VA, or USDA loans paired with it. For a conventional loan, your minimum credit score should be 660. The max purchase price is $510,939, and debt-to-income can’t exceed 50%. Funding’s still available as of now, but it’s first-come, first-served, so it’s worth checking with a KHC-approved lender ASAP.

USDA loans offer a zero-down option. This applies if your clients are buying in a rural area. USDA maps define these areas, but some suburban spots qualify too. Credit score minimum is 640 for most lenders, though technically it’s 620. No PMI, just a small guarantee fee. Income caps apply, usually 115% of the area median. Funds are typically available year-round unless Congress stalls the budget. This hasn’t happened yet for 2025.

FHA loans need just 3.5% down, with a 580 credit score floor (some lenders might flex lower with compensating factors). They’re widely available, no geographic limits, and pair well with local DPA programs. Mortgage insurance stays for the loan’s life unless you refinance later. It’s a reliable fallback if other options dry up.

For local programs, it depends on where your clients are. In Louisville, the Metro Down Payment Assistance Program offers up to 20% of the purchase price. This assistance is partially forgivable after 5-15 years. It is for low-to-moderate-income buyers.

Current Funding Status (as of March 21, 2025)

Update on the 2025 Welcome Home Program:


The 2025 Welcome Home Program has reached capacity. Applications are no longer being accepted for this year. These funds are extremely popular, showing just how strong the demand is among homebuyers.

But here’s the encouraging news: There are still plenty of excellent alternatives available! Kentucky Housing Corporation (KHC), USDA, FHA, and other local programs offer valuable down-payment assistance and financing options.

Let’s discuss which of these alternatives can best support your home-buying goals. I’m here and ready to help you explore your next steps!

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1 –  Email – kentuckyloan@gmail.com 2.   Call/Text – 502-905-3708

Joel Lobb
Mortgage Loan Officer – Expert on Kentucky Mortgage Loans


🌐 Website: www.mylouisvillekentuckymortgage.com
🏢 Address: 911 Barret Ave., Louisville, KY 40204

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Kentucky Local Home Loan Lender Services

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