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Homebuyer Programs in Florence, KY (2026)

Population: 32,000 | Median home price: $280,000 | Est. closing costs: $5,500 - $8,500

Last updated April 11, 2026

Skyline of Florence, KY

Florence is the largest city in Boone County and the second-most populous city in Northern Kentucky, located just south of Cincinnati, Ohio. With a median home price around $280,000, Florence offers a more affordable entry point compared to the greater Cincinnati metro. Buyers here can take advantage of the Northern Kentucky HOME Consortium Homebuyer Assistance program, which provides up to $10,000 in zero-interest forgivable loans for down payment and closing costs. The HONK Lease-to-Own Homeownership Program and Habitat for Humanity of Greater Cincinnati also serve the area, along with the FHLB Cincinnati Welcome Home Program offering grants of $10,000 to $20,000. By stacking local, state, and federal programs, Florence homebuyers may be able to combine $30,000 or more in total assistance.

County Programs in Boone County

Northern Kentucky HOME Consortium Homebuyer Assistance
Type:
Forgivable Loan
Amount:
Up to $10,000
First-time only:
No

State Programs in Kentucky

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

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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
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

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

How to Apply

Step 1:

Check your eligibility. Most programs in Florence require household income at or below 80% of Area Median Income. For the NKY HOME Consortium program, income limits are approximately $56,650 for a single person and $80,900 for a four-person household in Boone County.

Step 2:

Complete homebuyer education. Brighton Center, a HUD-approved housing counseling agency in Northern Kentucky, offers free homebuyer education courses including virtual workshops and a six-hour Saturday class. Contact their Financial Wellness Department at (859) 491-8303 to register.

Step 3:

Get pre-approved for a mortgage. Work with a Kentucky Housing Corporation (KHC) approved lender to explore state-level DPA options alongside your local programs. A KHC-approved lender can help you access the KHC Regular Down Payment Assistance or the Welcome Home Grant simultaneously.

Step 4:

Apply for the NKY HOME Consortium Homebuyer Assistance. Submit your application online through the Neighborly Software portal. Funds are reserved once you submit a fully accepted purchase contract.

Step 5:

Find a home within program guidelines. The NKY HOME Consortium program covers homes in Florence and other consortium cities. Make sure the property will be your primary residence.

Step 6:

Coordinate your closing. Your lender and the City of Covington Neighborhood Services Department will work together to apply your assistance at closing. The NKY HOME Consortium loan is forgiven after five years of continuous owner-occupancy.

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