Kentucky Welcome Home Grant 2026: $20,000 for Buyers
Kentucky Welcome Home Grant 2026 | How to Get Up to $20,000 for Down Payment & Closing Costs
Kentucky Welcome Home Grant 2026
How to Get Up to $20,000 for Down Payment & Closing Costs
⏰ Program opens April 6, 2026 at 8:00 a.m. ET
Funds are limited and reserved on a first-come, first-served basis.
What Is the Kentucky Welcome Home Grant?
The Kentucky Welcome Home Grant is a non-repayable housing assistance program that provides eligible homebuyers with $10,000 to $20,000 to be used toward down payment and closing costs. These funds do not require monthly repayment and do not create a second mortgage when program rules are followed.
The program is administered through participating lenders and is available statewide for primary residences located anywhere in Kentucky.
Why the Welcome Home Grant Matters in 2026
For many Kentucky buyers, the biggest obstacle to homeownership is not income or credit—it is saving enough cash to close. The Welcome Home Grant directly removes that barrier.
In prior years, funds were exhausted quickly. Buyers who were not pre-approved or under contract before opening day were often unable to secure funding.
2026 Program Timeline
Event
Details
Program Opens
April 6, 2026 at 8:00 a.m. ET
Funding Method
First-come, first-served
Lender Cap
$300,000 per lender
Final Disbursement
December 15, 2026
2026 Key Details
Grant Amount: $10,000 minimum to $20,000 maximum
Opens: April 6, 2026 at 8:00 a.m. ET
Income Limit: Household ≤ 80% MRB (county-specific; see dropdown below)
First-Time Buyer: Not required (education needed if first-time)
Credit Score: Typically 620+ (mortgage-dependent)
Buyer Contribution: Minimum $500 own funds (no gifts)
Retention: 5-year primary occupancy rule
Properties: Primary residence (1-4 units eligible)
Last Updated: February 3, 2026 | Income Limits Effective: June 23, 2025
Eligibility Requirements
Household Income Limits (80% of MRB)
Your total household income must be at or below 80% of the Mortgage Revenue Bond (MRB) income limit for the county where the home is located. Household income includes all adult occupants, not just borrowers on the loan.
Kentucky Welcome Home Grant 2026: Up to $20,000 Down Payment Assistance
The Kentucky Welcome Home Grant is a popular down payment and closing cost assistance program from the Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) and participating Kentucky lenders. This grant helps low- and moderate-income Kentucky homebuyers reduce upfront costs. Funds are limited and awarded first-come, first-served.
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What is the Kentucky Welcome Home Grant?
The Kentucky Welcome Home Grant (also called “Kentucky Welcome Grant” or FHLB Welcome Home Program) provides a non-repayable grant to help cover down payment and/or closing costs. It is offered through FHLB Cincinnati member banks and credit unions in Kentucky.
Why it’s popular:
Can be used with FHA, VA, USDA, or conventional loans
No monthly repayment (unless sold/refinanced early)
Available statewide in Kentucky
First-come, first-served — funds often run out quickly
How Much Assistance Can You Get in 2026?
Grants range from a minimum of $10,000 up to a maximum of $20,000 per household. The exact amount depends on program guidelines at opening and your specific needs. Funds can cover:
Fully executed purchase contract required to reserve funds
Primary residence only — occupy within 60 days of closing
First-time buyers must complete homebuyer education
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Note: Full list and any targeted tract adjustments available on Kentucky Housing Corporation. Confirm final limits when program opens.
Eligible Property Types in Kentucky
Single-family detached homes
Townhomes
Condominiums (FHA/VA/USDA approved)
Duplexes, triplexes, quadplexes (owner-occupied unit only)
Permanently affixed manufactured homes (taxed as real estate)
Second homes, investment properties, and vacation homes are not eligible.
Five-Year Retention Agreement
A 5-year retention period is recorded via deed restriction. If you sell, refinance (cash-out), or stop using the home as your primary residence before 5 years, a pro-rated portion of the grant may need to be repaid.
Credit Score Requirements
No minimum credit score is set by the Welcome Home Grant itself, but your mortgage program will require one. Typical minimums:
FHA, VA, USDA: 620
Conventional: 620–660 (lender dependent)
First-Time Home Buyer Requirements
First-time buyer status is not required. However, if you have not owned a home in the last 3 years, you must complete an approved homebuyer education course (online or in-person) before closing.
When Does the 2026 Program Open?
April 6, 2026 at 8:00 a.m. Eastern Time. Reservations are first-come, first-served and funds are limited.
How to Apply – Step-by-Step
Get pre-approved with a participating FHLB Cincinnati member lender
Verify household income against county limits
Find a home and sign a purchase contract
Lender submits reservation request when program opens
Close the loan within program timeline (usually 60–90 days)
Disclaimer: Independent educational resource. Not endorsed by VA, FHA, USDA, HUD, or any government agency. Equal Housing Lender. Visit http://www.nmlsconsumeraccess.org.
Note: Some counties have targeted census tracts with higher limits. Check with your lender or the KHC MRB Limits PDF for complete details (effective June 23, 2025).
Buyer and Property Rules
First-time homebuyer status is not required. Buyers must contribute at least $500 of their own funds. The home must be owner-occupied and located in Kentucky.
Credit and Loan Qualification
The grant itself has no minimum credit score. However, borrowers must qualify for an underlying mortgage such as FHA, VA, USDA Rural Housing, or conventional financing based on standard underwriting guidelines.
Retention Period
The home must remain the borrower’s primary residence for five years. Selling or refinancing early may require partial repayment of the grant.
Eligible Property Types
Single-family homes
Townhomes
Condominiums
2-4 unit properties (owner-occupied)
Permanently affixed manufactured homes
How Much Can You Receive?
Up to $20,000 for down payment, closing costs, or prepaids. Minimum request is $10,000 in most cases.
How to Apply
Get pre-approved with a participating lender
Verify income eligibility using the dropdown above
Secure a purchase contract
Lender reserves funds on April 6, 2026
Close timely
Application Checklist
Income docs (pay stubs, taxes for household)
Purchase contract
Pre-approval letter
Proof of $500+ contribution
Education certificate (if first-time)
ID/SSN docs
Participating Lenders
All FHLB Cincinnati member banks and credit unions in Kentucky can participate in the Welcome Home Program (grants up to $20,000 for down payment/closing costs). For a complete and current list of participating lenders, visit the FHLB Cincinnati Member Directory.
Not all lenders actively promote this program, so we recommend calling your lender directly to confirm they offer the Welcome Home Grant for 2026.
💡 Pro Tip: Reach out to us—we can help connect you with participating lenders and get your pre-approval started before April 6, 2026, when funds open!
Deed-restricted for 5 years. Early sale/refinance may require pro-rated repayment.
FAQ
Is first-time buyer status required?
No—repeat buyers qualify.
How fast do funds run out?
Often quickly—prepare early. In prior years, funds were exhausted within days. Get pre-approved before April 6, 2026.
Can the grant be combined with other assistance?
Yes, many buyers combine the Welcome Home Grant with FHA, VA, or USDA loans. Ask your lender about stacking programs.
What if I’m self-employed?
Self-employed income is acceptable with proper documentation (2 years tax returns, profit & loss statements).
How do I find a participating lender?
Visit the FHLB Cincinnati Member Directory to search by your county or area. Most community banks and credit unions in Kentucky participate. Call ahead to confirm they offer the Welcome Home Grant.
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+).
Kentucky General Mortgage Guide for Underwriting Approval
Kentucky Mortgage Underwriting Guidelines
Understanding Mortgage mortgage underwriting guidelines will help you understand your loan options when purchasing or refinancing a home. Now that you have found your dream house, you are going to need to apply for a Louisville Mortgage mortgage loan. Your Realtor will either recommend a banking institution or you may already have one in mind. You will be dealing with a loan officer who will be compiling all the data on you to see if you qualify for a loan to pay for this house. All lending institutions have different Underwriting Guidelines set in place when reviewing a borrower’s financial history to determine the likelihood of receiving on-time payments. The primary items reviewed are the following 5 areas…
17 thoughts on “Kentucky Welcome Home Grant 2026: $20,000 for Buyers”
Louisville Kentucky Mortgage NMLS# 57916 Equal Housing Lender
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2017 Welcome Home Program for Kentucky Home Buyers. – Louisville Kentucky Mortgage Loans commented Welcome Home Program for Kentucky Home Buyers https://kyfirsttimehomebuyer.wordpress.com/…/2017-welcome-h…
2017 Welcome Home Program for Kentucky Home Buyers.
Reblogged on WordPress.com
KYFIRSTTIMEHOMEBUYER.WORDPRESS.COM
Kentucky First-Time Home Buyer Programs | USDA, FHA, VA & KHC Loans 
Louisville Kentucky Mortgage NMLS# 57916 Equal Housing Lender
Published by WordPress · 19 hrs ·
2017 Welcome Home Program for Kentucky Home Buyers. – Louisville Kentucky Mortgage Loans commented Welcome Home Program for Kentucky Home Buyers
https://kyfirsttimehomebuyer.wordpress.com/…/2017-welcome-h…
2017 Welcome Home Program for Kentucky Home Buyers.
Reblogged on WordPress.com
KYFIRSTTIMEHOMEBUYER.WORDPRESS.COM
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