See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 11, 2026

Homebuyer Programs in Covington, KY (2026)

Population: 41,000 | Median home price: $195,000 | Est. closing costs: $4,000 - $6,000

Covington is a historic Northern Kentucky city situated along the Ohio River directly across from Cincinnati, Ohio, with a median home price around $195,000. Homebuyers in Covington have access to strong local assistance, including the Covington Homebuyer Assistance Program offering up to $10,000 as a forgivable loan and the Northern Kentucky HOME Consortium program providing up to $7,500 in additional forgivable assistance. At the state level, the KHC Regular DAP offers up to $12,500 and the FHLB Cincinnati Welcome Home Program provides grants of $10,000 to $20,000. By combining city, regional, and state programs, Covington buyers can potentially stack over $30,000 in down payment and closing cost assistance.

City Programs in Covington

Program Name	Type	Amount	First-Time Only	Details
Covington Homebuyer Assistance Program	Forgivable Loan	Up to $10,000	No	View →

Covington Homebuyer Assistance Program

Type:: Forgivable Loan
Amount:: Up to $10,000
First-time only:: No

County Programs in Kenton County

Program Name	Type	Amount	First-Time Only	Details
Northern Kentucky HOME Consortium Homebuyer Assistance	Forgivable Loan	Up to $10,000	No	View →

Northern Kentucky HOME Consortium Homebuyer Assistance

Type:: Forgivable Loan
Amount:: Up to $10,000
First-time only:: No

State Programs in Kentucky

Program Name	Type	Amount	First-Time Only	Details
FHLB Cincinnati Welcome Home Program	Grant	Grants of $10,000 to $20,000; up to $25,000 for veterans, active-duty military, and surviving spouses	Yes	View →
KHC Affordable Down Payment Assistance (Affordable DAP)	Repayable Loan	Up to $7,500	No	View →
KHC Regular Down Payment Assistance (DAP)	Repayable Loan	Up to $12,500	No	View →

FHLB Cincinnati Welcome Home Program

Type:: Grant
Amount:: Grants of $10,000 to $20,000; up to $25,000 for veterans, active-duty military, and surviving spouses
First-time only:: Yes

KHC Affordable Down Payment Assistance (Affordable DAP)

Type:: Repayable Loan
Amount:: Up to $7,500
First-time only:: No

KHC Regular Down Payment Assistance (DAP)

Type:: Repayable Loan
Amount:: Up to $12,500
First-time only:: No

Federal Programs

Program Name	Type	Amount	First-Time Only	Details
FHA Loans	Government-Insured Mortgage	Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)	No	View →
Good Neighbor Next Door (HUD)	Government Property Sale Program	50% discount off the list price of HUD-owned homes	Yes	View →
Home Possible Mortgage (Freddie Mac)	Government-Guaranteed Mortgage	Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment	No	View →
HomeReady Mortgage (Fannie Mae)	Government-Guaranteed Mortgage	Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment	No	View →
HUD $100 Down Program	FHA-Financed HUD REO Purchase	Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.	No	View →
USDA Rural Development Loans	Government-Guaranteed Mortgage	100% financing (no down payment required); loan amount up to appraised value	No	View →
VA Loans	Government-Guaranteed Mortgage	No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)	No	View →

FHA Loans

Type:: Government-Insured Mortgage
Amount:: Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:: No

Good Neighbor Next Door (HUD)

Type:: Government Property Sale Program
Amount:: 50% discount off the list price of HUD-owned homes
First-time only:: Yes

Home Possible Mortgage (Freddie Mac)

Type:: Government-Guaranteed Mortgage
Amount:: Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:: No

HomeReady Mortgage (Fannie Mae)

Type:: Government-Guaranteed Mortgage
Amount:: Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:: No

HUD $100 Down Program

Type:: FHA-Financed HUD REO Purchase
Amount:: Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:: No

USDA Rural Development Loans

Type:: Government-Guaranteed Mortgage
Amount:: 100% financing (no down payment required); loan amount up to appraised value
First-time only:: No

VA Loans

Type:: Government-Guaranteed Mortgage
Amount:: No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:: No

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
Habitat for Humanity of Greater Cincinnati NKY Homeownership	Zero-Interest Loan	Affordable home purchase with 0% interest mortgage	No	View →
HONK Lease-to-Own Homeownership Program	Deferred Loan	Varies; portion of monthly lease payments gifted back at purchase for down payment and closing costs	No	View →

Habitat for Humanity of Greater Cincinnati NKY Homeownership

Type:: Zero-Interest Loan
Amount:: Affordable home purchase with 0% interest mortgage
First-time only:: No

HONK Lease-to-Own Homeownership Program

Type:: Deferred Loan
Amount:: Varies; portion of monthly lease payments gifted back at purchase for down payment and closing costs
First-time only:: No

Free eligibility check

14 programs available in Covington. See which ones you qualify for.

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How to Apply

Step 1: Check your eligibility. Most Covington programs require household income at or below 80% of Area Median Income. For a single person that's approximately $47,850; for a four-person household it's about $68,300.

Step 2: Complete homebuyer education. You must complete a HUD-approved homebuyer education course. Contact Housing Opportunities of Northern Kentucky (HONK) at (859) 581-4665 for local counseling, or call HUD's national hotline at 800-569-4287 to find other approved agencies in the area.

Step 3: Get pre-approved for a mortgage. Work with a lender approved through the Kentucky Housing Corporation (KHC) network. If you want to access the FHLB Cincinnati Welcome Home Program grants, make sure your lender is an FHLB Cincinnati member institution.

Step 4: Find a home in Covington. The Covington Homebuyer Assistance Program requires purchasing within city limits. Browse available properties and identify a home that fits your budget.

Step 5: Submit your application. Once you have a fully accepted purchase contract, apply online through the City of Covington's Neighborly Software portal. Applications are processed on a first-come, first-served basis as funding is available.

Step 6: Close on your home. The city will coordinate your forgivable loan alongside your primary mortgage. Stay in the home as your principal residence to have the loan forgiven over time.

Frequently Asked Questions

How much down payment assistance can I get in Covington?+

Covington buyers can access multiple programs. The Covington Homebuyer Assistance Program provides up to $10,000 as a forgivable loan. The Northern Kentucky HOME Consortium adds up to $7,500 in forgivable assistance. At the state level, the KHC Regular DAP offers up to $12,500 and the FHLB Cincinnati Welcome Home Program provides grants of $10,000 to $20,000. By stacking these programs, eligible buyers could receive over $30,000 in total assistance.

Do I have to be a first-time homebuyer to qualify?+

No. The Covington Homebuyer Assistance Program and the NKY HOME Consortium program do not require first-time buyer status. However, the KHC state programs may have first-time buyer preferences for certain loan products. The FHLB Cincinnati Welcome Home Program is also open to repeat buyers.

What is the maximum home price I can pay?+

The Covington and NKY HOME Consortium programs do not specify a maximum purchase price, but your household income must be at or below 80% of Area Median Income, which naturally limits how much home you can afford. KHC programs have their own purchase price limits that vary by county.

What homebuyer education is required?+

Both the Covington Homebuyer Assistance Program and the NKY HOME Consortium require completion of a HUD-approved homebuyer education course. Housing Opportunities of Northern Kentucky (HONK) at (859) 581-4665 offers local homeowner, budget, and credit counseling. You can also find other HUD-approved agencies by calling 800-569-4287.

Are there nonprofit homeownership programs in Covington?+

Yes. Housing Opportunities of Northern Kentucky (HONK) offers a lease-to-own program where families live in a renovated home for 12-18 months while building credit, with a portion of lease payments gifted back at purchase. Habitat for Humanity of Greater Cincinnati is also building new affordable homes in Covington with 0% interest mortgages for income-qualified families.