See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 11, 2026
Homebuyer Programs in Louisville, KY (2026)
Louisville is Kentucky's largest city and a consolidated city-county government merged with Jefferson County, with a median home price around $260,000. The city offers one of the strongest local down payment assistance packages in the state through its Louisville Metro Down Payment Assistance Program, providing up to $25,000 as a partially forgivable loan for buyers earning below 80% AMI. Buyers in historically redlined neighborhoods may also qualify for the REVERT Program, offering up to $50,000 in grant funding for rehabilitation costs. At the state level, the Kentucky Housing Corporation Regular DAP adds up to $12,500 and the Affordable DAP provides up to $7,500 for lower-income buyers. By stacking the Louisville Metro DPA with a KHC program, eligible buyers could access over $37,000 in combined assistance toward their home purchase.
City Programs in Louisville
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| LMHA Section 8 Homeownership Program | Grant | Housing voucher subsidy applied to mortgage payment (amount varies by household) | No | View → |
| Louisville Metro Down Payment Assistance Program | Forgivable Loan | Up to 20% of the purchase price, maximum $30,000 (up to $40,000 with a streamlined 203(k) or VA renovation loan); 0% interest, partially forgivable second mortgage | No | View → |
| REVERT Program | Grant | Up to $50,000 | No | View → |
| Russell Homeownership Incentive Program | Grant | Up to $24,999 | No | View → |
- Type:
- Grant
- Amount:
- Housing voucher subsidy applied to mortgage payment (amount varies by household)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to 20% of the purchase price, maximum $30,000 (up to $40,000 with a streamlined 203(k) or VA renovation loan); 0% interest, partially forgivable second mortgage
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to $50,000
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to $24,999
- 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 → |
| 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 Metro Louisville Homeownership Program | Zero-Interest Loan | Homes priced $144,000 - $280,000 with 0% interest financing | No | View → |
| West End Community Land Trust | Zero-Interest Loan | Subsidized home pricing through land trust model | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Homes priced $144,000 - $280,000 with 0% interest financing
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Subsidized home pricing through land trust model
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Louisville Metro DPA requires household income below 80% AMI for Jefferson County. KHC programs have county-specific income and purchase price limits (currently $544,232 maximum).
Step 2: Complete homebuyer education. The Louisville Metro DPA requires at least 6 hours of HUD-approved homebuyer education. The Housing Partnership Inc. at (502) 585-5451 offers courses locally, as does Louisville Central Community Center.
Step 3: Get pre-approved for a mortgage. Work with a KHC-approved lender if you plan to use state DPA programs, or any qualified lender for the Louisville Metro DPA. Your lender can help you determine which programs you qualify for.
Step 4: Contact the Louisville Office of Housing and Community Development. Call (502) 574-5850 or apply online at portal.neighborlysoftware.com/louisvilleky/participant. Note that the Louisville Metro DPA has a seasonal application window (March through April 2026).
Step 5: Find a home within program guidelines. If using the Russell Homeownership Incentive Program (up to $24,999 grant), the home must be in the Russell neighborhood. The REVERT Program targets historically redlined neighborhoods.
Step 6: Submit your full application and close. Your lender will coordinate the DPA funding with your first mortgage. Allow extra processing time when stacking multiple assistance programs.
Frequently Asked Questions
How much down payment assistance can I get in Louisville?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay?+−
What homebuyer education is required?+−
Are there special programs for specific Louisville neighborhoods?+−
When can I apply for Louisville Metro down payment assistance?+−
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