Kentucky Welcome Home Grant Program Guidelines (2026)
The Welcome Home Grant is available to qualified applicants purchasing a primary residence in Kentucky. The program is administered through the Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) and is offered through participating lenders. Funds are first-come, first-served once the program opens. :contentReference[oaicite:1]{index=1}
What the grant can be used for
- Down payment
- Closing costs
- Prepaid items (when permitted by program rules/lender)
Core eligibility requirements (what typically trips people up)
- Primary residence only (no investment / no second homes). :contentReference[oaicite:2]{index=2}
- Total household income for everyone who will live in the home must be within the program’s county limit (commonly tied to MRB limits). :contentReference[oaicite:3]{index=3}
- Buyer contribution: at least $500 of the buyer’s own funds is commonly required. :contentReference[oaicite:4]{index=4}
- If first-time homebuyer (often defined as not owning in the last 3 years), homebuyer counseling is commonly required. :contentReference[oaicite:5]{index=5}
- Funds are limited. Having a contract and being fully qualified early is the difference between getting the grant and missing it. :contentReference[oaicite:6]{index=6}
Timing for 2026
- Program opens: April 6, 2026 at 8:00 a.m. ET. :contentReference[oaicite:7]{index=7}
- Funding: limited and may be exhausted quickly after opening. :contentReference[oaicite:8]{index=8}
Jefferson County, KY income example (for planning)
Important: Welcome Home eligibility uses the program’s published county income limit (commonly MRB-based). The table below is a planning example using Kentucky Housing’s published 80% AMI county figure for Jefferson County to help buyers ballpark readiness. Always confirm the official Welcome Home county limit before reserving funds. :contentReference[oaicite:9]{index=9}
County Planning example income figure (annual) Source / note Jefferson $75,440 80% AMI county figure (planning reference). Confirm the official Welcome Home county limit at reservation time. :contentReference[oaicite:10]{index=10} County selector (SEO expansion later)
Coming soon: a Kentucky county selector with county-by-county income planning examples and updated program notes.
Quick readiness checklist (so you don’t miss the funding window)
- Income reviewed up front (all occupants who will live in the home).
- Credit + documentation reviewed, not guessed.
- Pre-approval completed and updated.
- Buyer has at least $500 available to contribute (typical requirement).
- Homebuyer education completed early if required (don’t wait until you’re under the gun).
FAQ
Below are the most common questions buyers ask about the Kentucky Welcome Home Grant.
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}Disclaimer: Program rules, income limits, and availability can change. This content is informational and not a commitment to lend or a guarantee of grant funding.
The Welcome Home Grant is open to qualified applicants purchasing a primary residence in Kentucky. The program is administered through the Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) and offered locally through participating lenders.
Kentucky Welcome Home Grant Program Guidelines
Program purpose
The Welcome Home Grant is designed to help income-eligible homebuyers with down payment and closing costs. Funds are limited and awarded on a first-come, first-served basis once the program opens.Eligible borrowers
Applicants must meet income and eligibility requirements at the time of reservation. The program is typically targeted toward first-time homebuyers, but some years allow repeat buyers who meet income limits. All borrowers must occupy the home as their primary residence.Income limits
Household income must generally be at or below 80% of Area Median Income (AMI), based on household size and county. Income limits vary by county and household size and are set annually. Final limits are confirmed when the program officially opens.Eligible properties
• Must be located in Kentucky
• Must be owner-occupied (no investment or second homes)
• Must meet standard appraisal and habitability requirements
• Single-family homes, townhomes, and some condos may be eligibleGrant amounts
Grant amounts vary by year based on funding availability and program rules. In prior years, grants have typically ranged from several thousand dollars up to five figures. Funds can be used for:
• Down payment
• Closing costs
• Prepaid itemsGrant funds do not require repayment as long as program occupancy requirements are met.
Eligible loan types
The Welcome Home Grant is commonly paired with:
• FHA loans
• Conventional loans
• VA loans (for eligible veterans)
• USDA loans (where applicable)Final eligibility depends on lender participation and underwriting approval.
Timing and availability
The program typically opens once per year, most often in March. Funding can be exhausted very quickly—sometimes within days—due to high demand. Applications cannot be reserved in advance; borrowers must be fully qualified and under contract or ready to proceed when the program opens.Important limitations
• Funds are limited and not guaranteed
• Program rules can change year to year
• Income, purchase price, and eligibility are verified at reservation
• Participation depends on lender approval and available fundingBottom line
The Kentucky Welcome Home Grant can significantly reduce the upfront cost of buying a home, but preparation is critical. Buyers should be pre-approved, income-verified, and ready to move quickly once the program opens. Waiting until the program launches to start the loan process often results in missed opportunities.
Kentucky First-Time Home Buyer Programs | USDA, FHA, VA & KHC Loans 