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Get Matched Free →Homebuyer Programs in Covington, KY (2026)
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 → |
- 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 → |
- 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 → |
- 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
- Type:
- Repayable Loan
- Amount:
- Up to $7,500
- First-time only:
- No
- 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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 → |
- 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
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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 → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with 0% interest mortgage
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Varies; portion of monthly lease payments gifted back at purchase for down payment and closing costs
- First-time only:
- No
How to Apply
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.
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.
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.
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.
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.
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.