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:
- Down payment
- Closing costs
- Prepaids/escrow items (as allowed)
Eligibility Requirements
- Household income ≤ 80% of county MRB limit
- Minimum $500 buyer contribution (personal funds only)
- 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)
Approved Lenders – 2026 Participating Kentucky Lenders
Select a lender below or visit the FHLB Cincinnati Member Directory for the full list.
Checklist – Documents Needed to Apply
- Pay stubs (last 30 days) and W-2s/tax returns for all household adults
- Fully executed purchase contract
- Mortgage pre-approval letter
- Bank statements showing $500+ buyer contribution
- Homebuyer education certificate (if first-time buyer)
- Credit report / score documentation
- Government-issued ID and Social Security cards
Other Kentucky Down Payment Assistance Programs
Frequently Asked Questions
Is the Welcome Home Grant the same as “Kentucky Welcome Grant”?
Yes — same program.
Do I have to be a first-time homebuyer?
No. Repeat buyers qualify.
How quickly do funds run out?
Often within days or weeks. Preparation is critical.
Contact Joel Lobb – Kentucky Mortgage Expert
Call/Text: 502-905-3708
Email: kentuckyloan@gmail.com
Website: http://www.mylouisvillekentuckymortgage.com
Office: 911 Barret Ave., Louisville, KY 40204
NMLS #57916 | Company NMLS #1738461
Disclaimer: Independent educational resource. Not endorsed by VA, FHA, USDA, HUD, or any government agency. Equal Housing Lender. Visit http://www.nmlsconsumeraccess.org.
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.
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.
The home must remain the borrower’s primary residence for five years. Selling or refinancing early may require partial repayment of the grant.
Kentucky First-Time Home Buyer Programs | USDA, FHA, VA & KHC Loans 