KHC Conventional Preferred (HFA Preferred) First Mortgage Program

What is KHC Conventional Preferred (HFA Preferred) First Mortgage Program?

KHC Conventional Preferred (HFA Preferred) First Mortgage Program is a first mortgage for homebuyers in Statewide, Kentucky, administered by Kentucky Housing Corporation (KHC).

• KHC's Conventional Preferred (HFA Preferred) is a 30-year fixed conventional mortgage via Secondary Market funding, underwritten through Fannie Mae DU (Approve/Eligible). Available to first-time and repeat buyers statewide, income-limited to 80% AMI, with reduced charter-coverage MI, no minimum borrower contribution, no reserves, and 3% minimum down. KHC DAP can be layered.
• First-time and repeat buyers statewide.
• Reduced charter-coverage MI <=80% AMI.
• No minimum borrower contribution.
• No reserves required.
• 3% down.
• Compatible with KHC DAP, max 97% LTV with DAP.

Do you have to pay it back?

KHC Conventional Preferred (HFA Preferred) First Mortgage Program is a first mortgage and is repaid under the terms set by Kentucky Housing Corporation (KHC).

• The assistance is recorded in First position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

KHC Conventional Preferred (HFA Preferred) First Mortgage Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

KHC Conventional Preferred (HFA Preferred) First Mortgage Program limits household income to 80% of the area median income, which varies by county and household size.

• HFA Preferred: 80% AMI (applicant income only), eff. May 18, 2025. E.g. Jefferson $75,440; Fayette $81,920; Kenton/Boone $88,560; unlisted counties $56,720.
• 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?

KHC Conventional Preferred (HFA Preferred) First Mortgage Program caps the purchase price at $566,354.

• Eligible property types include Single Family, Condominium, and Duplex.
• New construction is eligible.

Where does it apply?

KHC Conventional Preferred (HFA Preferred) First Mortgage Program serves buyers purchasing in Statewide, Kentucky.

How do you apply?

Applications for KHC Conventional Preferred (HFA Preferred) First Mortgage Program go through Kentucky Housing Corporation (KHC), which publishes the current terms and the application steps on its own site.

1. 1

   Contact Kentucky Housing Corporation (KHC) to reserve funds

   Funds are reserved through KHC PowerLender (Mon-Fri 10a-9p), 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.