Lexington Habitat for Humanity Homeownership Program

What is 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.

Do you have to pay it back?

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.

Who qualifies?

Lexington Habitat for Humanity Homeownership Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program, through Lexington Habitat for Humanity (weekly homebuyer classes ~20 weeks).

2. 2

   Contact Lexington Habitat for Humanity 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.