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Homebuyer Programs in Nicholasville, KY (2026)

Population: 32,000 | Median home price: $260,000 | Est. closing costs: $5,000 - $8,000

Last updated April 11, 2026

Skyline of Nicholasville, KY

Nicholasville is the county seat of Jessamine County, located just south of Lexington in Central Kentucky. With a median home price around $260,000, it offers affordable homeownership in the greater Lexington metro area. While Nicholasville does not currently offer a city-funded down payment assistance program, buyers can take advantage of Kentucky Housing Corporation programs including the KHC Regular Down Payment Assistance of up to $12,500 and the FHLB Cincinnati Welcome Home Program with grants of $10,000 to $20,000. Community Ventures, a CHDO designated by KHC, purchases and renovates homes in Jessamine County and sells them to first-time buyers at affordable prices. By combining state and nonprofit programs, Nicholasville buyers may be able to stack $20,000 or more in total assistance.

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

Community Ventures CHDO Homeownership Program
Type:
Government Property Sale Program
Amount:
Subsidized home purchase price through renovation and rehabilitation
First-time only:
Yes
Habitat for Humanity of Jessamine County Homeownership
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with favorable mortgage terms
First-time only:
No

How to Apply

Step 1:

Check your eligibility. Most Kentucky state programs require household income at or below 80% of Area Median Income for Jessamine County. Contact a KHC-approved lender to determine your specific income limits and program eligibility.

Step 2:

Complete homebuyer education. Kentucky Housing Corporation requires completion of a homebuyer education course for many of its programs. You can complete homebuyer education online through eHome America or contact a local HUD-approved counseling agency. Call (800) 569-4287 to find a HUD-approved counselor near you.

Step 3:

Explore nonprofit homeownership options. Community Ventures at (859) 231-0054 offers a CHDO homeownership program that purchases and renovates homes in Jessamine County for first-time buyers. Habitat for Humanity of Jessamine County at (859) 285-9775 also builds affordable homes for qualifying families.

Step 4:

Get pre-approved for a mortgage. Work with a KHC-approved lender who can help you access the KHC Regular Down Payment Assistance of up to $12,500 or the KHC Affordable Down Payment Assistance of up to $7,500.

Step 5:

Apply for the FHLB Cincinnati Welcome Home Program. This program offers grants of $10,000 to $20,000 for down payment and closing costs. Funding opens annually and is typically exhausted quickly, so apply as soon as the window opens. Your KHC-approved lender can help coordinate this.

Step 6:

Find a home and close. Once pre-approved, find a home within program guidelines in Nicholasville or Jessamine County. Your lender will coordinate the DPA funds to be applied at closing.

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