Northern Kentucky HOME Consortium Homebuyer Assistance Program

What is Northern Kentucky HOME Consortium Homebuyer Assistance Program?

Northern Kentucky HOME Consortium Homebuyer Assistance Program is a forgivable loan for homebuyers in Covington, Kentucky, administered by Northern Kentucky HOME Consortium (administered by City of Covington Neighborhood Services Department).

• A HOME-funded homebuyer assistance program administered by the City of Covington's Neighborhood Services Department on behalf of the Northern Kentucky HOME Consortium, serving the cities of Covington, Ludlow, Erlanger, Independence, Florence, Newport, Bellevue, and Dayton across Kenton, Boone, and Campbell counties. Income-, credit-, and asset-qualified households can receive a zero-interest, deferred/forgivable loan of up to $10,000 toward the lender-required down payment and customary closing/settlement charges. The loan is forgiven 1/10 per year over a 10-year owner-occupancy period and may also be used to buy down the first-mortgage interest rate.
• Down payment assistance.
• Closing cost assistance.
• Settlement charge assistance.
• Interest rate buy-down option.
• 0% interest.
• Forgivable over time.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal HOME Investment Partnerships Program (HUD) via Northern Kentucky HOME Consortium.

How much assistance does it provide?

Northern Kentucky HOME Consortium Homebuyer Assistance Program offers up to $10,000 in assistance.

• The program can be combined with First-mortgage financing meeting program underwriting standards.
• Amounts are the program's published maximums, not an offer — Northern Kentucky HOME Consortium (administered by City of Covington Neighborhood Services Department) determines any individual award.

Do you have to pay it back?

Northern Kentucky HOME Consortium Homebuyer Assistance Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by If the property is sold, transferred, or the borrower does not reside in it for the full 10 years, the unforgiven balance becomes immediately due and payable (1/10 forgiven each year of residence).
• The assistance is recorded in Deferred second mortgage position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Northern Kentucky HOME Consortium Homebuyer Assistance Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

Northern Kentucky HOME Consortium Homebuyer Assistance 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% of Area Median Income per HUD limits (Part 5 income definition). 2023 limits: 1-person $56,650; 2 $64,750; 3 $72,850; 4 $80,900; 5 $87,400; 6 $93,850; 7 $100,350; 8 $106,800.
• 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?

Northern Kentucky HOME Consortium Homebuyer Assistance Program caps the purchase price at $247,000.

• Eligible property types include Single Family, 2-4 Unit, and Manufactured.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Northern Kentucky HOME Consortium Homebuyer Assistance Program is a federal program, so it is not limited to Kentucky.

• The program targets specific areas: Available only in the 8 Consortium cities across Kenton, Boone, and Campbell counties.
• Targeted neighborhoods: Covington, Ludlow, Erlanger, Independence, Florence, Newport, Bellevue, Dayton.

How do you apply?

Applications for Northern Kentucky HOME Consortium Homebuyer Assistance Program go through Northern Kentucky HOME Consortium (administered by City of Covington Neighborhood Services Department), 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 HUD-approved housing counseling agency with a HUD-certified counselor; local options include Catholic Charities Diocese of Covington, Northern KY Community Action Commission, and Brighton Center.

2. 2

   Contact Northern Kentucky HOME Consortium (administered by City of Covington Neighborhood Services Department) to reserve funds

   Funds are reserved through Apply any time online via Neighborly portal; funds reserved only upon submission of a fully accepted purchase contract; processed first-come, first-served as funding remains available, 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.