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Homebuyer Programs in Jeffersontown, KY (2026)

Population: 28,000 | Median home price: $285,000 | Est. closing costs: $5,500 - $8,500

Last updated April 11, 2026

Skyline of Jeffersontown, KY

Jeffersontown, commonly known as J-Town, is a home rule city in Jefferson County within the Louisville Metro area, located about 12 miles southeast of downtown Louisville. With a median home price around $285,000, it offers suburban living with easy access to Louisville amenities. J-Town buyers benefit from the Louisville Metro Down Payment Assistance Program, which provides up to $25,000 as a partially forgivable loan for homes anywhere in Jefferson County. The KHC Hardest Hit Fund DPA adds up to $10,000 as a zero-interest forgivable loan exclusively for Jefferson County properties. Combined with KHC state programs offering up to $12,500 and the FHLB Cincinnati Welcome Home Program with grants of $10,000 to $20,000, Jeffersontown buyers can potentially stack $40,000 or more in total assistance.

City Programs in Jeffersontown

LMHA Section 8 Homeownership Program
Type:
Grant
Amount:
Housing voucher subsidy applied to mortgage payment (amount varies by household)
First-time only:
No
Louisville Metro Down Payment Assistance Program
Type:
Forgivable Loan
Amount:
Up to $25,000
First-time only:
No

County Programs in Jefferson County

KHC Hardest Hit Fund Down Payment Assistance (HHF-DAP)
Type:
Forgivable Loan
Amount:
Up to $10,000
First-time only:
Yes

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 Metro Louisville Homeownership Program
Type:
Zero-Interest Loan
Amount:
Homes priced $144,000 - $280,000 with 0% interest financing
First-time only:
No

How to Apply

Step 1:

Check your eligibility. The Louisville Metro DPA requires household income at or below 80% of the Area Median Income and no more than $15,000 in liquid assets. The KHC Hardest Hit Fund DPA requires first-time buyer status (no homeownership in the past three years).

Step 2:

Complete homebuyer education. Louisville Metro requires a minimum 6-hour homebuyer counseling course from a HUD-approved agency. If applying with a co-applicant, both must complete the course. The Louisville Urban League at (502) 561-6830 and Neighborhood Housing Services at (502) 454-0504 are local HUD-approved counseling providers.

Step 3:

Get pre-approved for a mortgage. Work with a KHC-approved lender who 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 Louisville Metro Down Payment Assistance Program. Applications are accepted during a 60-day open window each year (March 2 to April 30 for 2026). Apply through the Louisville Metro Office of Housing website. Do not miss the window.

Step 5:

Find a home in Jefferson County. The Louisville Metro DPA covers existing and newly constructed homes throughout Jefferson County, including Jeffersontown. Ensure the property will be your primary residence.

Step 6:

Coordinate your closing. Your lender will layer the Louisville Metro DPA, HHF-DAP, and state DPA funds together at closing. The Louisville Metro DPA is partially forgivable after 5-10 years of occupancy, and the HHF-DAP is fully forgiven after 5 years.

Frequently Asked Questions

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