Yes, there is real down payment help for buyers in Kentucky and Southern Indiana: Kentucky Housing Corporation (KHC) offers down payment assistance with its mortgages, Louisville Metro runs its own program for buyers in the Louisville Metro area, and Indiana's housing authority (IHCDA) has programs for Indiana buyers. Each has its own income limits, price limits and rules, and terms change, so treat this as a map and check current terms with the program before you count on anything.

We pulled the details below from each program's official page in November 2026. Here's what to know, and how to find out if you qualify.

Kentucky Housing Corporation (KHC) Down Payment Assistance

KHC is Kentucky's statewide housing finance agency. Its programs run through KHC-approved lenders.

• What it is: KHC's Down Payment Assistance (DPA) provides up to $12,500 toward your down payment and closing costs, according to KHC.
• How it works: It's not a grant. KHC describes it as a secondary loan repaid over a 15-year term.
• Who it's for: Buyers getting a KHC first mortgage that meets KHC's purchase price and income limits.
• The first mortgages: KHC lists conventional, FHA, VA and Rural Housing (RHS) loans, all 30-year fixed. Per KHC's loan programs page, its conventional loans require at least 3% down with a 660 minimum credit score, and its FHA loans at least 3.5% down with a 620 minimum.
• First-time buyers: KHC says some of its loans (Mortgage Revenue Bond loans) are generally limited to first-time buyers in most of Kentucky, with exceptions in targeted areas. A KHC-approved lender can confirm what you qualify for.

Official pages: KHC Down Payment Assistance and KHC Loan Programs. Check current terms with the program.

Louisville Metro Down Payment Assistance Program

Louisville Metro Government runs a separate program for homes in the Louisville Metro area. Based on the city's program page (updated August 2026):

• How much: The page lists assistance up to 20% of the purchase price, with a maximum of $30,000. (Another city page has listed an older, lower cap, so confirm the current figure with DPA staff.)
• How it works: A 0% interest, partially forgivable loan. You live in the home as your primary residence for 5 to 10 years depending on the amount; at the end of that period 50% is forgiven, and the remaining balance is due when the home is sold.
• Income limit: 80% of area median income. The page lists caps from $55,450 for a one-person household to $104,550 for eight people (for example, $79,200 for a household of four).
• Price limits: $260,000 for existing single-family homes and $331,000 for new single-family homes.
• Who can apply: Not limited to first-time buyers, but you can't currently own a home.
• Counseling: At least six hours of homebuyer counseling from a HUD-approved agency, completed before applying.
• Timing: Applications go through the city's online portal, and the city says to allow 45 days for review. You choose a lender and an agent before approval. The city says applications are open while funding remains, so check whether the program is currently accepting applications.

Official page: Louisville Metro Down Payment Assistance Program. Check current terms with the program.

Indiana: IHCDA homebuyer programs (Southern Indiana)

If you're buying across the river in Indiana, the Indiana Housing and Community Development Authority (IHCDA) runs the state programs through lenders that offer them.

First Step

• A 30-year fixed FHA or conventional mortgage paired with non-forgivable down payment assistance.
• For first-time buyers, or buyers purchasing in a targeted census tract. IHCDA's program guide also lists an exception for verifiable military status.
• IHCDA lists a $250 reservation fee.

Next Home

• Open to first-time and repeat buyers, per IHCDA's program guide.
• Down payment assistance calculated as a percentage of the purchase price (IHCDA's programs page lists 2.5% or 3.5% depending on price), not to exceed the appraised value.
• The assistance is a non-forgivable second mortgage, due if the first mortgage ends or the home stops being your primary residence.

Indiana requirements to know

• Income limits vary by county and household size.
• IHCDA's guide lists Fannie Mae HomeView and Freddie Mac CreditWise as the accepted homebuyer education certificates.

Official page: IHCDA Homebuyer Programs. Check current terms with the program.

Low down payment loan types worth knowing

Assistance programs pair with a first mortgage. Some loan types already need little or nothing down:

• FHA: HUD says the down payment can be as low as 3.5% of the purchase price. (HUD)
• VA: For eligible veterans and servicemembers, VA says no down payment is required as long as the sales price isn't higher than the appraised value, and there's no PMI. (VA)
• USDA: USDA's guaranteed loan offers 100% financing for eligible buyers in eligible areas, and USDA says income cannot exceed 115% of median household income. You can check an address on USDA's eligibility map. (USDA)
• Conventional: Fannie Mae's HomeReady allows a down payment as low as 3% for borrowers with income under 80% of the area median. (Fannie Mae)

How to actually use these programs

1. Talk to a lender that participates. KHC programs go through KHC-approved lenders, and IHCDA programs through lenders that offer them. Not every lender does them, so ask directly.
2. Do the homebuyer education early. Several programs require it, and it's useful anyway.
3. Get pre-approved with the program in mind. Our step-by-step: How to Get Pre-Approved for a Mortgage in Louisville.
4. Gather documents once. Use our Pre-Approval Documents Checklist.
5. Build in time. Program reviews take time; Louisville Metro, for example, says to allow 45 days. If you rent, see when to start before your lease ends.
6. Write a strong offer. See what sellers want to see.

How Winner Realty helps

Down payment programs reward people who start early and work with folks who know the paperwork. We introduce you to lenders we trust so you can compare terms and get pre-approved, plus inspectors, insurance agents and movers. You're always free to choose any lender — we'll introduce a few we trust so you can compare.

Our agents guide you from pre-approval to keys, including searching within a program's price limits and keeping its deadlines on track.

Get homes in your budget sent to you free: https://www.thewinnerrealty.com/buy-box-signup

Email Rob with any questions: Rob@thewinnerrealty.com

Frequently asked questions

Is down payment assistance free money?

Usually not entirely. KHC's assistance is a repayable 15-year loan, Louisville Metro's is partially forgivable, and IHCDA's is a non-forgivable second mortgage. Read the terms with your lender.

Do I have to be a first-time homebuyer?

It depends on the program. Louisville Metro's program isn't limited to first-time buyers but requires that you don't currently own a home. IHCDA's Next Home is open to repeat buyers. Some KHC loans are generally limited to first-time buyers outside targeted areas.

Can I combine programs?

KHC says its DPA can be stacked with other incentives from lenders when available. Whether two specific programs can be combined is a question for your lender and the programs.

Where do I apply?

For KHC and IHCDA, through a participating lender. For Louisville Metro, through the city's online application after completing counseling. Check current terms with each program.

Sources (checked November 2026): kyhousing.org, louisvilleky.gov, in.gov/ihcda, hud.gov, va.gov, rd.usda.gov, yourhome.fanniemae.com. Programs, limits and funding change; confirm everything with the program and your lender.

Equal Housing Opportunity.