Do I have to be a first-time homebuyer to qualify?

Not necessarily. The FHLB Cincinnati Welcome Home Program is open to repeat buyers. KHC programs have first-time buyer preferences for certain loan products, but some KHC products are available to non-first-time buyers as well. FHA and VA loans do not require first-time buyer status.

Is Richmond eligible for USDA loans?

Parts of Madison County may be eligible for USDA Rural Development loans, which offer 0% down payment financing for income-qualified buyers in eligible rural areas. USDA eligibility depends on the specific property address, so check the USDA eligibility map for your target location in or around Richmond.

What homebuyer education is required?

KHC programs require completion of a HUD-approved homebuyer education course. CCCS of the Midwest at 200 E Main St in Richmond provides financial counseling locally. You can also call HUD at 800-569-4287 to find additional approved agencies. Kentucky River Foothills also offers homeownership counseling in the broader region.

Are there nonprofit homeownership programs in Richmond?

Yes. Habitat for Humanity of Madison and Clark Counties has been serving the area since 1991. They build affordable homes in partnership with income-qualified families who provide sweat equity hours. Household income must not exceed 60% of Area Median Income, and applicants must have lived or worked in Madison or Clark County for at least one year. Contact them at their Richmond office for application details.

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Homebuyer Programs in Richmond, KY (2026)

Q: How much down payment assistance can I get in Richmond?

While Richmond does not have city or county-specific DPA programs, buyers can access state and federal assistance. The KHC Regular DAP provides up to $12,500, the KHC Affordable DAP offers up to $7,500, and the FHLB Cincinnati Welcome Home Program provides grants of $10,000 to $20,000. Federal programs like FHA (3.5% down), VA (0% down), and USDA (0% down for eligible rural areas) also reduce upfront costs. Combining these, eligible buyers could access over $30,000 in assistance.

Population: 37,200 | Median home price: $250,000 | Est. closing costs: $5,000 - $7,500

Last updated April 11, 2026

Richmond is a college town in Madison County, Kentucky, home to Eastern Kentucky University and located about 30 miles south of Lexington. With a median home price around $250,000, Richmond does not currently offer city-funded or county-funded down payment assistance programs, but buyers have access to strong state and federal options. The KHC Regular DAP provides up to $12,500 in loan assistance, the KHC Affordable DAP offers up to $7,500, and the FHLB Cincinnati Welcome Home Program provides grants of $10,000 to $20,000 on a first-come, first-served basis each year. Parts of Madison County may also qualify for USDA Rural Development loans with 0% down payment. By combining state and federal programs, Richmond buyers can potentially access over $30,000 in assistance.

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 →

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

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 →

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

Program Name	Type	Amount	First-Time Only	Details
Habitat for Humanity of Madison & Clark Counties Homeownership	Zero-Interest Loan	Affordable home purchase with below-market mortgage	No	View →

Habitat for Humanity of Madison & Clark Counties Homeownership

Type:: Zero-Interest Loan
Amount:: Affordable home purchase with below-market mortgage
First-time only:: No

How to Apply

Step 1:

Check your eligibility. Kentucky Housing Corporation programs require household income at or below specific limits that vary by county. Madison County income limits are set by KHC based on Area Median Income.

Step 2:

Complete homebuyer education. KHC programs require completion of a HUD-approved homebuyer education course. CCCS of the Midwest at 200 E Main St in Richmond offers financial counseling. You can also call HUD's national hotline at 800-569-4287 to find approved agencies, or visit the Kentucky Housing Corporation website for partner counseling agencies.

Step 3:

Get pre-approved for a mortgage. Work with a lender approved through the Kentucky Housing Corporation network. If you want to access the FHLB Cincinnati Welcome Home Program grants of $10,000 to $20,000, make sure your lender is an FHLB Cincinnati member institution. Check whether your property address qualifies for USDA Rural Development financing as well.

Step 4:

Find a home in Richmond. Browse available properties within KHC purchase price limits for Madison County. Richmond offers options from historic downtown homes to newer subdivisions.

Step 5:

Apply for state assistance. Your KHC-approved lender will help you apply for the Regular DAP (up to $12,500) or Affordable DAP (up to $7,500) alongside your primary mortgage. Welcome Home Program grants open once per year and are reserved on a first-come, first-served basis.

Step 6:

Close on your home. Your lender will coordinate all assistance programs with your primary mortgage at closing.

Frequently Asked Questions

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