See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 11, 2026
Homebuyer Programs in Frankfort, KY (2026)
Frankfort, the state capital of Kentucky, is a small city of about 29,000 residents nestled along the Kentucky River in Franklin County. With a median home price around $206,000, Frankfort offers affordable homeownership opportunities compared to larger Kentucky metros. While the city does not currently operate its own city-funded down payment assistance program, buyers here can take advantage of Kentucky Housing Corporation programs offering up to $12,500 in down payment assistance through the KHC Regular DAP, up to $7,500 through the KHC Affordable DAP, and grants of $10,000 to $25,000 through the FHLB Cincinnati Welcome Home Program. The Fuller Center for Housing in Frankfort also partners with families in Franklin County to provide affordable homeownership through sweat equity partnerships. By combining state and federal programs, Frankfort homebuyers can potentially stack significant assistance to reduce their out-of-pocket costs.
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 → |
| 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:
- 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 |
|---|---|---|---|---|
| Fuller Center for Housing - Frankfort Homeownership Program | Zero-Interest Loan | Varies; affordable mortgage terms based on family need | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Varies; affordable mortgage terms based on family need
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Review income limits for Kentucky Housing Corporation programs, which vary by county and household size. Franklin County income limits are set by HUD and updated annually. Most KHC programs require income at or below 80% of area median income.
Step 2: Complete homebuyer education. Kentucky Housing Corporation requires all borrowers to complete a HUD-approved homebuyer education course. Contact KCEOC in Frankfort at 502-209-5382 for pre-purchase counseling and homebuyer education workshops available in English and Spanish.
Step 3: Find a KHC-approved lender. Kentucky Housing Corporation works through a network of participating lenders across the state. Commonwealth Credit Union in Frankfort at 101 Sower Boulevard is a KHC partner that can help you access KHC loan programs and down payment assistance.
Step 4: Get pre-approved for a mortgage. Work with your KHC-approved lender to determine which loan program and down payment assistance option fits your situation. The KHC Regular DAP offers up to $12,500 and the Affordable DAP offers up to $7,500.
Step 5: Explore the Fuller Center for Housing. If you need additional affordable housing options, contact the Fuller Center for Housing in Frankfort about their homeownership partnership program in Franklin County. Families contribute sweat equity hours and receive affordable mortgage terms.
Step 6: Find a home and submit your application. Work with a real estate agent to find a home within program price limits. Your KHC-approved lender will guide you through the application process for both your primary mortgage and down payment assistance.
Step 7: Close on your home. Once approved, you will attend a closing with your lender, real estate agent, and closing attorney. Your down payment assistance funds will be applied at closing to reduce your out-of-pocket costs.
Frequently Asked Questions
How much down payment assistance can I get in Frankfort?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay using these programs?+−
Where can I get homebuyer education in Frankfort?+−
Does Frankfort have its own city-funded down payment assistance?+−
Is Frankfort eligible for USDA rural housing loans?+−
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