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Get Matched Free →Homebuyer Programs in Lexington, KY (2026)
Lexington is Kentucky's second-largest city and a consolidated city-county government merged with Fayette County, with a median home price around $330,000. The city offers several homebuyer assistance options including the Lexington First-Time Homebuyer Program administered through REACH Inc. and local Habitat affiliates, and the REACH HOME Program which provides up to $30,000 in forgivable second mortgage assistance for households earning below 80% AMI. University of Kentucky employees can access up to $15,000 through the UK Employer Assisted Housing Program. At the state level, KHC Regular DAP adds up to $12,500 and the KHC Affordable DAP provides up to $7,500 for lower-income buyers. The Lexington Community Land Trust and Lexington Habitat for Humanity also provide permanently affordable homeownership paths for qualifying buyers.
City Programs in Lexington
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Lexington First-Time Homebuyer Program | Forgivable Loan | Varies by administering partner. Non-repayable subsidies and 0-2% interest loans available. | Yes | View → |
| Lexington Housing Authority Homeownership Program | Forgivable Loan | Up to $100,000 in assistance for qualifying applicants | No | View → |
| University of Kentucky Employer Assisted Housing Program | Forgivable Loan | Up to $15,000 (5% of home purchase price) | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Varies by administering partner. Non-repayable subsidies and 0-2% interest loans available.
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $100,000 in assistance for qualifying applicants
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 (5% of home purchase price)
- First-time only:
- No
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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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 |
|---|---|---|---|---|
| Lexington Community Land Trust | Zero-Interest Loan | Subsidized home pricing through community land trust model | No | View → |
| Lexington Habitat for Humanity Homeownership Program | Zero-Interest Loan | Below-market home purchase with $1,500 closing cost contribution from buyer | No | View → |
| REACH HOME Program | Forgivable Loan | Up to $20,000-$30,000 (varies by household size: $20,000 for 1-person, $25,000 for 2-person, $30,000 for 3+ persons) | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Subsidized home pricing through community land trust model
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Below-market home purchase with $1,500 closing cost contribution from buyer
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000-$30,000 (varies by household size: $20,000 for 1-person, $25,000 for 2-person, $30,000 for 3+ persons)
- First-time only:
- Yes
How to Apply
Check your eligibility. Most Lexington programs target buyers earning at or below 80% AMI for Fayette County. The Lexington First-Time Homebuyer Program requires first-time buyer status. KHC state programs have a purchase price limit of $544,232.
Complete homebuyer education. Nearly all Lexington programs require homebuyer education. REACH Inc. at (859) 455-8057 offers HUD-approved courses locally, and Community Ventures Corporation at (859) 231-0054 provides eHome America online coursework.
Contact a local housing partner. REACH Inc. at 733 Red Mile Road administers the REACH HOME Program (up to $30,000). Lexington Habitat for Humanity at (859) 252-2224 offers affordable home purchases. The Lexington Community Land Trust at (859) 303-5223 provides permanently affordable homeownership.
Get pre-approved for a mortgage. Work with a KHC-approved lender if you plan to use state DPA programs. Your lender can help determine which programs you qualify for and how to stack assistance.
Find a home within program guidelines. Some programs restrict purchases to specific areas — the UK Employer Assisted Housing Program requires homes in designated neighborhoods near campus, and the Housing Authority program offers new construction at Equestrian View Subdivision.
Submit your full application and close. Your lender and housing counselor will coordinate the DPA funding with your first mortgage. Note that city funding is cyclical — check current availability with your housing partner.