Lexington Habitat for Humanity Homeownership Program

Lexington Habitat for Humanity Homeownership Program is a first mortgage for homebuyers in Lexington, Kentucky, administered by Lexington Habitat for Humanity. Lexington Habitat for Humanity builds and remodels energy-efficient single-family townhomes in Lexington/Fayette County and sells them to income-qualified families via an affordable mortgage with payments set at ~25% of gross monthly income on a 30-year term. Families complete 250-500 sweat-equity hours and ~20 weeks of homebuyer education, and contribute $2,000 toward closing costs (prepaid). Applications are cyclical. Affordable below-market mortgage (~25% of gross income). 30-year term. Quality new/remodeled energy-efficient homes. Homebuyer education included. $2,000 closing-cost contribution refundable if purchase does not proceed.

Lexington Habitat for Humanity Homeownership Program is a first mortgage and is repaid under the terms set by Lexington Habitat for Humanity. 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.

Lexington Habitat for Humanity Homeownership Program is open to homebuyers who will live in the home as their primary residence. On credit, the program states: Satisfactory credit required; bankruptcy discharged 3+ years prior; foreclosures settled 5+ years prior; collections/charge-offs cannot exceed $2,000. A homebuyer education course is required, through Lexington Habitat for Humanity (weekly homebuyer classes ~20 weeks). Residency requirement: Must have lived or worked in Fayette County, KY for one continuous year prior to application. Citizenship or immigration status: U.S. citizen or legal resident; documentation required. 250 sweat-equity hours (1-adult) or 500 (2+ adults), 100-150 in construction. Applications cyclical; closed Aug 22, 2025, expected to reopen 2026. LFUCG channels HOME/CDBG funds to Lexington Habitat. Contact: Catherine Mitchell ext.130. Interest rate not separately published beyond the 25%-of-income payment formula.

Lexington Habitat for Humanity Homeownership Program limits household income to 80% of the area median income, which varies by county and household size. Gross annual household income must not exceed 80% AMI for Fayette County; minimum $40,050/yr. By household size (Feb 2026): 1=$57,350; 2=$65,550; 3=$73,750; 4=$81,900; 5=$88,500; 6=$95,050; 7=$101,600; 8=$108,150. The limit applies to total household income, not only the borrower’s. The program lists a maximum household size of 8. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Lexington Habitat for Humanity Homeownership Program caps the purchase price as follows: Homes sold at appraised value, currently ~$200,000-$290,000; varies by size/location. Eligible property types include Single Family and Townhouse. New construction is eligible. Manufactured homes are not eligible.

Lexington Habitat for Humanity Homeownership Program serves homebuyers purchasing in Lexington, Kentucky.

Applications for Lexington Habitat for Humanity Homeownership Program go through Lexington Habitat for Humanity, which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.