City of Henderson First Time Homebuyer Program

What is City of Henderson First Time Homebuyer Program?

City of Henderson First Time Homebuyer Program is a deferred second loan for homebuyers in Henderson, Kentucky, administered by City of Henderson Community Development Division.

• The City of Henderson's First Time Homebuyer Program helps low-income families purchase their first home using federal CDBG/HOME funds. The city provides an interest-free deferred loan of up to the lesser of 6% of the purchase price or $10,000 toward down payment and closing costs, and can additionally loan up to $35,000 for home repairs. The deferred loan carries no monthly payments. Assistance is provided to households on a waiting list as federal funding becomes available.
• Interest-free deferred loan up to lesser of 6% of purchase price or $10,000 for down payment/closing costs.
• Up to $35,000 for home repairs.
• No monthly payments.
• No prepayment penalty.
• Funding comes from U.S. HUD CDBG and HOME entitlement funds.

How much assistance does it provide?

City of Henderson First Time Homebuyer Program offers up to $10,000 in assistance.

• Award tiers: Down payment/closing costs: lesser of 6% of purchase price or $10,000; Home repairs: up to $35,000 (combined up to $45,000).
• Amounts are the program's published maximums, not an offer — City of Henderson Community Development Division determines any individual award.

Do you have to pay it back?

City of Henderson First Time Homebuyer Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Repaid when home is sold, transferred, or no longer the borrower's primary residence; may be repaid early without penalty.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Henderson First Time Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Henderson First Time Homebuyer Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income eligibility determined using HUD Section 8 income limits for Henderson County, KY. FY2026 80% (Low Income) 4-person limit = $60,900.
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Henderson First Time Homebuyer Program can be used for Single Family.

Where does it apply?

City of Henderson First Time Homebuyer Program serves buyers purchasing in Henderson, Kentucky.

How do you apply?

Applications for City of Henderson First Time Homebuyer Program go through City of Henderson Community Development Division, which publishes the current terms and the application steps on its own site.

1. 1

   Contact City of Henderson Community Development Division to reserve funds

   Funds are reserved through Waiting list; applications mailed to waitlisted households when funding is available, and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.