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Homebuyer Programs in Independence, KY (2026)

Population: 29,000 | Median home price: $255,000 | Est. closing costs: $5,000 - $7,500

Last updated April 11, 2026

Skyline of Independence, KY

Independence is the county seat of Kenton County in Northern Kentucky, located about 15 miles south of Cincinnati, Ohio. With a median home price around $255,000, it offers suburban affordability within the greater Cincinnati metro. Independence buyers benefit from the Northern Kentucky HOME Consortium Homebuyer Assistance program, which provides up to $10,000 in zero-interest forgivable loans, and the KHC Hardest Hit Fund DPA, which offers another $10,000 forgivable loan exclusively for Kenton County properties. The FHLB Cincinnati Welcome Home Program adds grants of $10,000 to $20,000, and the HONK Lease-to-Own program serves the area as well. By stacking these local, state, and federal programs, Independence homebuyers could access $30,000 or more in combined assistance.

County Programs in Kenton County

KHC Hardest Hit Fund Down Payment Assistance (HHF-DAP)
Type:
Forgivable Loan
Amount:
Up to $10,000
First-time only:
Yes
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 require household income at or below 80% of Area Median Income for Kenton County. The KHC Hardest Hit Fund DPA also requires first-time buyer status (no homeownership in the past three years). Contact a KHC-approved lender to determine your specific income limits.

Step 2:

Complete homebuyer education. Brighton Center, a HUD-approved housing counseling agency in Northern Kentucky, offers free and low-cost 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 with a KHC-approved lender. A KHC-approved lender can help you access the KHC Hardest Hit Fund DPA of up to $10,000 and the KHC Regular Down Payment Assistance of up to $12,500 simultaneously. Ask about the FHLB Cincinnati Welcome Home Program grants as well.

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. The program is administered by the City of Covington Neighborhood Services Department.

Step 5:

Explore additional options. The HONK Lease-to-Own program at (859) 581-4665 offers an alternative path to homeownership in Kenton County, and Habitat for Humanity of Greater Cincinnati builds affordable homes in the Northern Kentucky region.

Step 6:

Find a home and close. The HHF-DAP requires the property to be in Kenton County. Your lender will coordinate all DPA funds to be applied at closing. The NKY HOME Consortium loan is forgiven after five years of continuous owner-occupancy.

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