Record Levels of Down Payment Help, and Most Buyers Don't Know They Qualify
There are more homebuyer assistance programs available than ever. Here's what Louisville-area buyers can tap, and how to find out if you're eligible.
October 27, 2026
With mortgage rates above 7% this fall, many would-be buyers in Louisville have decided homeownership will have to wait. For most of them, the real obstacle isn't the monthly payment. It's the money needed up front for the down payment and closing costs.
Here's what many of them are missing: help with that up-front cash is more widely available today than at any point on record.
A record number of programs
As of October 1, 2026, there were 2,833 homebuyer assistance programs across the country, according to Down Payment Resource's Q3 2026 report. That's 87 more than in the previous quarter and the most the company has ever counted.
These programs aren't small, either. Down Payment Resource says they average about $18,000 in benefits per buyer. They also aren't only for first-time buyers: 38% of programs have no first-time-buyer requirement.
What's available in the Louisville area
Here are the main options to know about if you're buying in Louisville or elsewhere in Kentucky.
Kentucky Housing Corporation (KHC) Down Payment Assistance. KHC offers up to $12,500 toward your down payment, closing costs, or both (KHC). It's a second loan that you repay over 15 years, and you have to pair it with a KHC first mortgage through a KHC-approved lender. Income and purchase-price limits apply.
Louisville Metro Down Payment Assistance. For buyers within Louisville Metro, the city's program can provide up to 20% of the purchase price, up to $30,000 (Louisville Metro). It's a 0% loan, and half of it is forgiven once you've lived in the home for the required period. Household income must be at or below 80% of the area median (for example, $79,200 for a family of four), and you must complete homebuyer counseling first. The program is accepting applications now, but it opens in set windows, so don't wait if you're interested.
Do you qualify? A quick checklist
You may be closer than you think. Here's what KHC and Metro look at (KHC FAQs):
- Credit score: KHC requires a minimum score of 620 for government-backed loans (FHA, VA, USDA) and 660 for conventional loans.
- Income: Each program has its own income limit, based on your household size and the type of loan.
- Home price: Each program also caps the purchase price of the home.
- First-time buyer status: It isn't always required. In some targeted areas, KHC programs are open to repeat buyers too.
- Homebuyer education: KHC doesn't require it for its own programs, but Louisville Metro requires 6 hours of counseling from a HUD-approved agency.
Why buyers miss out
Many buyers never ask about these programs. Others assume they earn too much or have already owned a home. Down Payment Resource reviewed mortgage applications that were declined in 2025 and found that 35% could have been funded with a matching assistance program.
The lesson is simple: check before you rule yourself out.
How to find out where you stand
- Talk with a KHC-approved lender. A loan officer can check your eligibility for KHC, Louisville Metro and other programs at the same time.
- Use KHC's "See if You Qualify" tool at kyhousing.org, or call Statewide Mortgage at 502-585-5626
- Line up homebuyer counseling early if you're considering Louisville Metro's program, since you need it before you apply.
One caution: KHC warns that scammers sometimes pose as the agency. If anyone contacts you claiming to offer KHC funds, call KHC directly to confirm.
Statewide Mortgage is a Louisville-based lender that works with these programs every day. If you'd like to know which ones fit your situation, contact us or apply online for a no-obligation review.
