Kentucky Welcome Home Grant 2026: Get Up to $20,000 for Your Down Payment

Kentucky homebuyers can get up to $20,000 in free money to help with down payments and closing costs through the Kentucky Welcome Home Grant. The program opens on April 6, 2026 at 8:00 AM Eastern Time, and funds go fast.

What Is the Welcome Home Grant?

The Federal Home Loan Bank of Cincinnati offers this grant to help low- and moderate-income families buy homes in Kentucky. The money never has to be paid back as long as you live in the home for five years.

How Much Can You Get?

Eligible buyers can receive between $10,000 and $20,000 to use for:

• Down payment
• Closing costs
• Prepaid expenses (like property taxes and insurance)

Who Can Apply?

You may qualify if:

• Your household income is 80% or less of the Mortgage Revenue Bond (MRB) limit for your county
• You're buying a primary residence (where you'll live full-time)
• You have at least $500 of your own money to contribute
• Your credit score is typically 620 or higher

You do not have to be a first-time homebuyer, but first-time buyers must complete a homebuyer education course.

Income Limits by County

Each Kentucky county has different income limits based on household size. For example, a family of four might qualify with an income up to $60,000 in some counties, while others allow higher or lower limits.

Check the official 2026 income limits PDF to see if you qualify.

How to Apply

You cannot apply directly to the program. Instead, follow these steps:

1. Get pre-approved for a mortgage with a participating lender
2. Find a home and sign a purchase contract
3. Your lender submits your grant reservation when the program opens on April 6, 2026
4. Close on your home within the required timeline

Important: Funds are limited and distributed first-come, first-served. In past years, money ran out within hours. Start working with a lender now to be ready on April 6.

Five-Year Requirement

You must live in the home as your primary residence for five years. If you sell or move out before five years, you may have to pay back some of the grant money.

Find a Participating Lender

Not all mortgage lenders offer the Welcome Home Grant. Contact lenders in your area to find one that participates in the program. Common participating lenders include:

• L&N Federal Credit Union (Louisville area)
• UKFCU, Commonwealth CU (Lexington/Central KY)
• Paducah Bank, Independence Bank (Western KY)
• Citizens National Bank, Community Trust (Eastern/Southern KY)

For a full list, visit the FHLB Cincinnati website.

Don't Wait

If you're planning to buy a home in Kentucky this year, start preparing now. Contact a participating lender today, get pre-approved, and be ready when the program opens on April 6, 2026.

$20,000 in free money doesn't come around often. Don't miss out.