See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 11, 2026
Homebuyer Programs in Henderson, KY (2026)
Henderson is a western Kentucky city of about 28,000 residents situated along the Ohio River in Henderson County. With a median home price around $179,000, Henderson offers some of the most affordable homeownership opportunities in the state. The City of Henderson operates its own First Time Homebuyer Program providing up to $10,000 in zero-interest deferred loans for down payment and closing costs, plus up to $35,000 for home repairs. Buyers can also access Kentucky Housing Corporation programs offering up to $12,500 through the KHC Regular DAP and grants of $10,000 to $25,000 through the FHLB Cincinnati Welcome Home Program. Habitat for Humanity of Henderson is also active in the community with 15 partner families currently in its homeownership pipeline. By stacking the city program with state and federal assistance, Henderson homebuyers can significantly reduce their out-of-pocket costs.
City Programs in Henderson
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Henderson First Time Homebuyer Program | Deferred Loan | Up to $10,000 for down payment and closing costs (6% of purchase price or $10,000, whichever is less); plus up to $35,000 for home repairs | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to $10,000 for down payment and closing costs (6% of purchase price or $10,000, whichever is less); plus up to $35,000 for home repairs
- First-time only:
- Yes
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 |
|---|---|---|---|---|
| Habitat for Humanity of Henderson Homeownership Program | Zero-Interest Loan | Affordable mortgage with $1,000 minimum down payment required | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with $1,000 minimum down payment required
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The City of Henderson First Time Homebuyer Program requires income at or below 80% of Area Median Income, a credit score of at least 640, less than $25,000 in assets, and you must have lived or worked in Henderson for at least one year. You also must not have owned a home in the last three years.
Step 2: Complete homebuyer education. A HUD-approved homebuyer education course is required for the city program and most KHC programs. Contact the HUD-approved housing counseling agency in Henderson at 270-827-1486 for pre-purchase education workshops.
Step 3: Contact the City of Henderson Community Development Division. Visit the Community Development office at Henderson City Hall to learn about the First Time Homebuyer Program and begin your application. They can help you understand income limits and property requirements.
Step 4: Find a KHC-approved lender. Kentucky Housing Corporation works through participating lenders who can help you access KHC loan programs and down payment assistance of up to $12,500 through the Regular DAP or up to $7,500 through the Affordable DAP.
Step 5: Explore Habitat for Humanity of Henderson. If you need additional affordable housing options, contact Habitat for Humanity of Henderson about their homeownership partnership program. Applications are accepted during their annual housing fair, and the program requires 250 hours of sweat equity.
Step 6: Get pre-approved and find a home. Work with your lender to get pre-approved. Properties purchased with city program funds must be within Henderson city limits and at or below the HUD median area sales price of $257,450. You must contribute a minimum of $1,500 of your own funds.
Step 7: Submit your application and close. Your lender and the City Community Development Division will guide you through the final application steps. The city program provides a zero-interest deferred loan with no monthly payments, repayable only when you sell or move.
Frequently Asked Questions
How much down payment assistance can I get in Henderson?+−
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 Henderson?+−
What are the requirements for the City of Henderson program?+−
How does the Habitat for Humanity program work in Henderson?+−
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