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Get Matched Free →Homebuyer Programs in Owensboro, KY (2026)
Owensboro is Kentucky's fourth-largest city, situated along the Ohio River in Daviess County, with a median home price around $187,000 making it one of the more affordable markets in the state. The city offers a Homebuyer Grant and a separate Down Payment Assistance Grant of up to $5,000 through its Community and Economic Development Office for buyers purchasing in the Monarch Neighborhood Revitalization Strategy Area. Habitat for Humanity of Owensboro-Daviess County provides below-market mortgages and is expanding with a major new land donation. At the state level, the KHC Regular DAP adds up to $12,500 and the KHC Affordable DAP provides up to $7,500 for lower-income buyers. By combining the city DPA with a KHC program, eligible buyers in Owensboro could access over $17,000 in combined assistance, which goes a long way in this affordable market.
City Programs in Owensboro
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Owensboro Down Payment Assistance Grant | Deferred Loan | Up to $5,000 | No | View → |
| Owensboro Homebuyer Grant | Deferred Loan | Varies by funding cycle | No | View → |
- Type:
- Deferred Loan
- Amount:
- Up to $5,000
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Varies by funding cycle
- 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 |
|---|---|---|---|---|
| Habitat for Humanity of Owensboro-Daviess County | Zero-Interest Loan | Below-market mortgage on Habitat-built homes | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Below-market mortgage on Habitat-built homes
- First-time only:
- No
How to Apply
Check your eligibility. The Owensboro city programs target low-to-moderate income buyers in the Monarch NRSA neighborhood. KHC state programs have a statewide purchase price limit of $544,232 and county-specific income limits for Daviess County.
Contact the City of Owensboro Community and Economic Development Office. Visit 101 East 4th Street, Owensboro, KY 42303 to learn about the Homebuyer Grant and Down Payment Assistance Grant programs and confirm eligibility for the Monarch NRSA area.
Complete homebuyer education if required. Audubon Area Community Services at (270) 686-1624 provides housing services in the Owensboro area. You can also contact Housing Assistance and Development Services (HANDS Inc.) at (270) 796-4176 for HUD-approved counseling.
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 city and state assistance.
Find a home within program guidelines. City DPA programs are limited to the Monarch NRSA neighborhood. Habitat for Humanity homes are available in the Owensboro-Daviess County service area. Contact Habitat at (270) 926-6110 for available properties.
Submit your application and close. Your lender and the city housing office will coordinate DPA funding with your first mortgage. Allow extra time when combining multiple assistance programs.