City of Owensboro Down Payment Assistance Program

What is City of Owensboro Down Payment Assistance Program?

City of Owensboro Down Payment Assistance Program is a forgivable loan for homebuyers in Owensboro, Kentucky, administered by City of Owensboro (Community Development / Northwest NRSA).

• The City of Owensboro DPA helps low- and moderate-income residents by providing up to 10% of the home's sales price toward down payment and/or closing costs. Assistance is a deferred 'soft second' loan with no current interest or principal payments, secured by a second lien, forgiven after the affordability period if guidelines are met. The home must be in the City of Owensboro and occupied as the buyer's primary residence; the loan becomes due upon sale, transfer, refinance, default, or loss of owner-occupancy.
• Up to 10% of sales price.
• 0% interest deferred 'soft second' loan.
• No monthly payments.
• Forgiven after affordability period.
• No prepayment penalty.
• Usable for down payment, closing costs, and rate buy-down.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal HUD funds (HOME / CDBG) administered by the City of Owensboro.

How much assistance does it provide?

City of Owensboro Down Payment Assistance Program provides assistance worth 10% of the purchase price, as set by the program.

• Amounts are the program's published maximums, not an offer — City of Owensboro (Community Development / Northwest NRSA) determines any individual award.

Do you have to pay it back?

City of Owensboro Down Payment Assistance Program is a forgivable loan, so the balance is forgiven once the program's conditions are met.

• Repayment is triggered by Deferred 'soft second' forgiven after the affordability period. Due upon sale, transfer, conveyance; failure to occupy as principal residence; default; or refinance of the first mortgage. Generally not due on death/divorce when remaining spouse occupies.
• The assistance is recorded in Second position (subordinate lien recorded with Daviess County Clerk) 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 Owensboro Down Payment Assistance 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 Owensboro Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% of HUD AMI for Owensboro/Daviess County. 2025: 1p $48,300; 2 $55,200; 3 $62,100; 4 $68,950; 5 $74,500; 6 $80,000; 7 $85,500; 8 $91,050.
• 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 Owensboro Down Payment Assistance Program caps the purchase price at $209,000.

• Eligible property types include Single Family, Townhouse, Condo, and Manufactured.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

City of Owensboro Down Payment Assistance Program is a federal program, so it is not limited to Kentucky.

How do you apply?

Applications for City of Owensboro Down Payment Assistance Program go through City of Owensboro (Community Development / Northwest NRSA), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Must complete a Homebuyer Education Training course (provider not specified).

2. 2

   Contact City of Owensboro (Community Development / Northwest NRSA) to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   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.