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KHC Mortgage Revenue Bond (MRB) First Mortgage Program

Kentucky Housing Corporation (KHC) · Statewide, Kentucky

Last verified
See what you qualify forOfficial program site →
Price cap

$566,354

Highest purchase price the program allows

What is KHC Mortgage Revenue Bond (MRB) First Mortgage Program?

KHC Mortgage Revenue Bond (MRB) First Mortgage Program is a first mortgage for homebuyers in Statewide, Kentucky, administered by Kentucky Housing Corporation (KHC).

  • KHC's Mortgage Revenue Bond (MRB) program offers a below-market 30-year fixed first mortgage (FHA/VA/RHS) statewide using tax-exempt bond financing. First-time buyers in non-targeted areas; first-time and repeat buyers in targeted areas. KHC DAP can be layered on top.
  • Below-market 30-year fixed rate.
  • Statewide.
  • Compatible with KHC DAP.
  • FHA/VA/RHS eligible.
  • Repeat buyers eligible in targeted areas.

Do you have to pay it back?

KHC Mortgage Revenue Bond (MRB) 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 Mortgage Revenue Bond (MRB) First Mortgage Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Repeat buyers eligible in designated targeted areas; first-time required in non-targeted areas
  • The home is occupied as a primary residence
  • On credit: Minimum 620 for FHA, VA, and RHS
  • DRAFT (dpa-gap-finder 2026-06-12): pending review. Rate subject to change; 45-day lock. Federal recapture tax may apply if sold within 9 years under income conditions. Current rate as of research (June 2026): 5.75% FHA/VA/RHS.

The program excludes

  • Purchases above the $566,354 price cap

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

KHC Mortgage Revenue Bond (MRB) First Mortgage Program sets its income limit as follows: MRB Gross Annual Household Income Limits by county (incl. non-borrowing occupants on title), eff. June 23, 2025. E.g. Jefferson 1-2p $97,214 / 3+p $111,796; Boone/Campbell/Kenton 1-2p $111,800 / 3+p $128,570; targeted tracts higher.

  • 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?

KHC Mortgage Revenue Bond (MRB) First Mortgage Program caps the purchase price at $566,354.

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

Where does it apply?

KHC Mortgage Revenue Bond (MRB) First Mortgage Program serves buyers purchasing in Statewide, Kentucky.

  • The program targets specific areas: Designated targeted counties/census tracts statewide where repeat buyers are eligible and income limits are higher.

How do you apply?

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

  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. 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.

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