Kentucky Regular DAP

What is Kentucky Regular DAP?

Kentucky Regular DAP is a grant for homebuyers in Statewide, Kentucky.

• KHC's flagship statewide repayable down payment assistance program. Up to $12,500 (minimum $1,000) at 4.75% fixed amortized over 15 years, paired with a KHC first mortgage. Open to first-time and repeat homebuyers. $544,232 max purchase price, Secondary Market / MRB income limits, 620 FICO. Enter in AUS as subordinate financing.
• Kentucky Housing Corporation's Regular Down Payment Assistance Program (Regular DAP) provides a repayable second mortgage of $1,000 to $12,500 (in $100 increments) to qualifying KHC first-mortgage borrowers. The DAP second is amortized over 15 years at a fixed 4.75% interest rate (per current KHC grid effective 11/20/2025). Funds may be applied to down payment and/or customary closing costs. The Regular DAP is paired with a KHC first mortgage (FHA, RHS/USDA, VA, HFA Preferred, HFA Preferred Plus 80, or Freddie HFA Advantage). Open to both first-time and repeat home buyers. Statewide.
• Funding comes from State, Bond, and Secondary Market.

Do you have to pay it back?

Kentucky Regular DAP is structured as a grant, so it is not repaid.

• Repayment is triggered by Monthly amortizing second mortgage and principal and interest payments due each month for 15 years alongside the first mortgage. Balance also due in full on sale, refinance, or transfer of the property.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Kentucky Regular DAP is open to buyers who will live in the home as their primary residence.

What are the income limits?

Kentucky Regular DAP limits household income to $195,650.

• 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?

Kentucky Regular DAP caps the purchase price at $544,232.

• Eligible property types include Single-family detached, condominium, townhouse, PUD, 2-unit (1 unit owner-occupied), manufactured home on permanent foundation (per overlays). New construction and existing properties both eligible.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Kentucky Regular DAP names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Kentucky Regular DAP serves buyers purchasing in Statewide, Kentucky.

• The program targets specific areas: Federally designated targeted census tracts (per IRS) where MRB-funded loans waive first-time-homebuyer requirements and offer higher income/purchase-price limits.

How do you apply?

Applications for Kentucky Regular DAP go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved through KHC's online Loan Reservation System by KHC-approved participating lender at time of rate lock. Subject to funding availability., 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.