2026 Update: The Kentucky Welcome Home Grant is expected to return in March 2026.
Grant amounts, income limits, and eligibility requirements have not yet been released.
This page will be updated immediately once official guidance is published.
Kentucky Welcome Home Grant Update for 2026
The Kentucky Welcome Home Grant will return for 2026, but important details are still pending.
Each year, the Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) releases official Welcome Home Program guidelines and funding amounts in March. As of today, the 2026 Welcome Home Grant has not yet been released, and the exact grant amounts, income limits, and eligibility requirements have not been published.
Historically, this program opens quickly and funds are reserved on a first-come, first-served basis. Once the 2026 guidelines are announced, funding typically moves fast.
If you are planning to buy a home in Kentucky in 2026 and want to be ready, the smartest move is to prepare early rather than wait for the announcement.
Status of the Welcome Home Grant
- 2025 Welcome Home Grant funds are fully exhausted
- 2026 Welcome Home Grant details expected in March
- Grant amounts, income limits, and eligibility have not been released yet
- Applications cannot be submitted until official guidance is published
What the Welcome Home Grant Offered in Prior Years
While 2026 numbers are not yet available, the Welcome Home Program has historically provided substantial assistance to Kentucky homebuyers.
In recent years, the Federal Home Loan Bank of Cincinnati offered:
- Up to $25,000 for honorably discharged veterans, surviving spouses, and active-duty military buyers
- Up to $20,000 for non-military homebuyers
These funds were used for down payment and closing costs and were subject to income limits based on 80 percent of the Mortgage Revenue Bond (MRB) limits for the county.
Again, these figures are for reference only. 2026 limits and grant amounts may change.
Don’t Wait on the Welcome Home Grant to Buy a Home
If you missed out on the Welcome Home Grant this year, or if you are planning ahead for 2026, there are still strong alternatives available right now for Kentucky homebuyers.
Powerful Down Payment Assistance Options Available in Kentucky
Kentucky Housing Corporation (KHC) Down Payment Assistance
KHC offers down payment assistance programs that can provide up to $12,500 in assistance for first-time and repeat homebuyers. These programs can be paired with FHA, VA, USDA, and conventional loans.
USDA Home Loans
USDA loans offer 100 percent financing for eligible rural areas, and many parts of Kentucky qualify. These loans allow qualified buyers to purchase with no down payment.
VA Home Loans
VA loans provide zero down payment, no monthly mortgage insurance, and competitive interest rates for eligible veterans, active-duty service members, and surviving spouses.
FHA Loans with Down Payment Assistance
FHA loans allow as little as 3.5 percent down and offer more flexible credit guidelines. FHA loans can often be combined with KHC assistance to reduce out-of-pocket costs.
Conventional 3 Percent Down Loans
Conventional loan programs allow first-time buyers to purchase with as little as 3 percent down and may offer reduced private mortgage insurance with strong credit.
5 Percent Grant FHA and USDA Down Payment Assistance
Some Kentucky lenders offer a 5 percent grant program based on the purchase price of the home. This assistance can be used for down payment, closing costs, or to lower the interest rate on the underlying mortgage.
Key Benefits of the 5 Percent Grant Program
- Can be used with Kentucky FHA or Kentucky USDA loans
- Up to 5 percent of the purchase price toward down payment, closing costs, or rate buy-down
- Forgivable and repayable options available
- No first-time homebuyer requirement
- No income limits beyond FHA or USDA guidelines
SmartBuy and Repayable Down Payment Assistance Options
Additional programs may include:
- Five-year forgivable down payment assistance with a subordinated second lien
- 30-year repayable down payment assistance with a 10-year balloon
- Closing cost assistance with a repayable second lien
Forgivable options are fully forgiven after five years if the borrower meets all program requirements.
General Borrower Eligibility Guidelines
- Eligibility is based on FHA or USDA loan guidelines
- Borrowers are not required to be first-time homebuyers
- No additional income limits beyond USDA guidelines when applicable
- Minimum representative credit score of 620
- All borrowers must have at least one valid credit score
How to Prepare for the 2026 Welcome Home Grant
Because the Welcome Home Grant opens quickly and funding is limited, preparation is critical.
The best strategy is to get pre-approved, understand your income eligibility, and have your documentation ready so you can act immediately once 2026 funding is announced.
Ready to Get Started or Want to Be Notified When 2026 Opens?
If you want to be positioned to take advantage of the 2026 Welcome Home Grant or explore other down payment assistance options available right now, I can help you map out the best strategy for your situation.
Call or text: (502) 905-3708
Email: kentuckyloan@gmail.com
I work with Kentucky homebuyers every day and can guide you through every available program so you don’t miss your opportunity.
Explore Kentucky Home Loan and Assistance Programs
Get Notified When 2026 Welcome Home Grant Funds Are Released
Welcome Home Grant funding opens quickly and is reserved on a first-come, first-served basis.
If you want to be notified the moment 2026 funds are announced, reach out now so you don’t miss it.
Call or Text: (502) 905-3708
Email: kentuckyloan@gmail.com
I’ll help you prepare in advance so you can act immediately when March funding opens.
Kentucky First-Time Home Buyer Programs | USDA, FHA, VA & KHC Loans 