Updated September 1, 2026 — Kentucky Housing Corporation (KHC) has released new income limits for both its MRB (Mortgage Revenue Bond) and Secondary Market loan programs, effective September 1, 2026. The purchase price limit also increased to $566,354 (effective May 18, 2026). This guide covers the new limits for every Kentucky county, plus how to qualify for up to $12,500 in KHC down payment assistance.

What Is the KHC $12,500 Down Payment Assistance Program?

KHC’s Down Payment Assistance Program (DAP) provides a repayable second mortgage that helps Kentucky homebuyers reduce upfront costs. It pairs with a KHC first mortgage (FHA, VA, USDA, or Conventional).

  • Assistance Amount: Up to $12,500
  • Repayment: 15-year fully amortizing second mortgage
  • Interest Rate: Typically around 4.75% (KHC sets rate; subject to change)
  • Used For: Down payment, closing costs, prepaids
  • Not a Grant: This is a repayable second mortgage

KHC 2026 Purchase Price Limit

KHC uses a statewide purchase price limit for both MRB and Secondary Market loans:

Maximum Purchase Price Allowed: $566,354 (effective May 18, 2026)

New KHC Income Limits — Effective September 1, 2026

KHC uses two different sets of income limits depending on which funding source your loan uses:

  • Secondary Market: Counts only the applicant’s gross annual income (the borrowers on the loan) — one limit per county regardless of household size.
  • MRB (Mortgage Revenue Bond): Counts total household income, with separate limits for 1–2 person and 3+ person households.

KHC Secondary Market Income Limits 2026 (Applicant Income)

Effective September 1, 2026. The applicant income limit for all Kentucky counties not listed below is $152,775.

County Applicant(s) Income Limit
Anderson $168,525
Ballard $154,875
Boone $192,325
Bourbon $178,675
Bracken $192,325
Bullitt $173,250
Campbell $192,325
Christian $164,150
Clark $178,675
Daviess $161,175
Fayette (Lexington) $178,675
Franklin $161,175
Gallatin $192,325
Hardin $154,350
Harrison $157,500
Henry $173,250
Jefferson (Louisville) $173,250
Jessamine $178,675
Kenton $192,325
Larue $154,350
Lyon $160,475
McCracken $173,600
McLean $161,175
Meade $159,425
Mercer $158,900
Oldham $173,250
Pendleton $192,325
Scott $178,675
Shelby $183,575
Spencer $173,250
Trigg $164,150
Woodford $178,675
All other counties $152,775

KHC MRB Household Income Limits 2026 (All 120 Kentucky Counties)

Effective September 1, 2026. MRB limits are based on gross annual household income and household size. Counties marked ** contain Targeted Census Tracts with higher limits (see the next table).

County 1–2 Person 3+ Person
Adair** $87,300 $100,660
Allen $96,960 $113,120
Anderson $102,074 $117,386
Ballard $103,634 $119,180
Barren** $87,300 $100,660
Bath $104,760 $122,220
Bell $104,760 $122,220
Boone** $109,900 $126,385
Bourbon $102,100 $117,415
Boyd** $99,960 $116,620
Boyle $96,840 $112,980
Bracken $109,900 $126,385
Breathitt $104,760 $122,220
Breckinridge $88,920 $103,740
Bullitt $101,534 $116,765
Butler $90,240 $105,280
Caldwell $91,200 $106,400
Calloway** $98,760 $115,220
Campbell** $109,900 $126,385
Carlisle $95,400 $111,300
Carroll $94,440 $110,180
Carter $104,760 $122,220
Casey $104,760 $122,220
Christian** $102,574 $117,961
Clark** $102,100 $117,415
Clay $104,760 $122,220
Clinton $104,760 $122,220
Crittenden $93,840 $109,480
Cumberland $104,760 $122,220
Daviess** $102,914 $118,352
Edmonson $97,680 $113,960
Elliott $104,760 $122,220
Estill $104,760 $122,220
Fayette** (Lexington) $102,100 $117,415
Fleming $104,760 $122,220
Floyd $104,760 $122,220
Franklin $102,914 $118,352
Fulton** $87,300 $100,660
Gallatin $109,900 $126,385
Garrard** $91,080 $106,260
Grant $103,934 $119,525
Graves $87,300 $100,660
Grayson $87,300 $101,500
Green $104,760 $122,220
Greenup** $99,960 $116,620
Hancock $97,080 $113,260
Hardin $103,694 $119,249
Harlan $104,760 $122,220
Harrison $103,334 $118,835
Hart** $87,300 $100,660
Henderson** $95,640 $111,580
Henry $101,534 $116,765
Hickman $103,914 $119,502
Hopkins** $89,520 $104,440
Jackson $104,760 $122,220
Jefferson** (Louisville) $101,534 $116,765
Jessamine $102,100 $117,415
Johnson $104,760 $122,220
Kenton** $109,900 $126,385
Knott $104,760 $122,220
Knox $104,760 $122,220
Larue $103,694 $119,249
Laurel $104,760 $122,220
Lawrence $104,760 $122,220
Lee $104,760 $122,220
Leslie $104,760 $122,220
Letcher $104,760 $122,220
Lewis $104,760 $122,220
Lincoln** $87,300 $100,660
Livingston $97,680 $113,960
Logan $94,320 $110,040
Lyon $102,994 $118,444
Madison** $102,960 $119,801
Magoffin $104,760 $122,220
Marion $91,920 $107,240
Marshall $102,720 $119,840
Martin $104,760 $122,220
Mason** $87,300 $100,660
McCracken** $101,494 $116,719
McCreary $104,760 $122,220
McLean $102,914 $118,352
Meade $103,114 $118,582
Menifee $104,760 $122,220
Mercer $103,174 $118,651
Metcalfe $104,760 $122,220
Monroe $104,760 $122,220
Montgomery** $91,440 $106,680
Morgan $104,760 $122,220
Muhlenberg $87,300 $101,500
Nelson $103,894 $119,479
Nicholas $91,800 $107,100
Ohio** $87,300 $100,660
Oldham $101,534 $116,765
Owen $99,480 $116,060
Owsley $104,760 $122,220
Pendleton $109,900 $126,385
Perry $104,760 $122,220
Pike $104,760 $122,220
Powell $104,760 $122,220
Pulaski** $90,360 $105,420
Robertson $104,760 $122,220
Rockcastle $104,760 $122,220
Rowan $104,760 $122,220
Russell** $87,300 $100,660
Scott** $102,100 $117,415
Shelby $104,900 $120,635
Simpson $94,200 $109,900
Spencer $101,534 $116,765
Taylor $101,760 $118,720
Todd $91,320 $106,540
Trigg $102,574 $117,961
Trimble $103,680 $119,663
Union $91,920 $107,240
Warren** $97,680 $113,960
Washington $101,520 $118,440
Wayne $104,760 $122,220
Webster $87,720 $102,340
Whitley $104,760 $122,220
Wolfe $104,760 $122,220
Woodford $102,100 $117,415

Targeted Census Tract Income Limits (MRB)

If the home you are buying sits in a Targeted Census Tract, higher MRB household income limits apply — and the first-time homebuyer requirement is waived. Counties with targeted tracts and their higher limits (effective September 1, 2026):

County (Targeted Tracts) 1–2 Person 3+ Person
Boone, Campbell, Kenton $131,880 $153,860
Clark, Fayette, Scott $122,520 $142,940
McCracken $119,040 $138,880
Jefferson (21 Louisville tracts) $118,800 $138,600
Christian $112,560 $131,320
Daviess $110,520 $128,940
Adair, Barren, Boyd, Calloway, Fulton, Garrard, Greenup, Hart, Henderson, Hopkins, Lincoln, Madison, Mason, Montgomery, Ohio, Pulaski, Russell, Warren $104,760 $122,220

Ask your lender to confirm whether a specific property address falls in a targeted census tract.

KHC Credit Score Requirements 2026

Verified against current KHC guidelines, September 2026:

  • FHA (KHC): 620 minimum credit score
  • VA (KHC): 620 minimum credit score
  • USDA/RHS (KHC): 620 minimum (many lenders prefer 640+ for a GUS automated approval)
  • KHC Conventional (HFA Preferred & HFA Advantage): 660 minimum credit score
  • $12,500 DAP second mortgage: follows the same minimum score as the KHC first mortgage it is paired with

These are KHC program minimums — individual lender overlays can be higher, and a higher score generally means better pricing on the first mortgage.

KHC Debt-to-Income (DTI) Limits 2026

  • Maximum total DTI: 50% with an automated underwriting approval (DU Approve/Eligible, LPA Accept, or GUS Accept)
  • Front-end (housing) ratio: typically 40–45% depending on AUS findings and loan type
  • No AUS approval? Manual underwriting is allowed on government loans but with tighter ratios per FHA/VA/USDA agency guidelines

Manual underwriting requires:

  • Lower DTI than the 50% AUS ceiling
  • Clean 12-month housing and installment payment history
  • Strong reserves and documented compensating factors
  • Little/no recent derogatory credit

Why Buyers Use KHC

  • Up to $12,500 assistance
  • Low upfront cash-to-close
  • Works with FHA, VA, USDA, and Conventional loans
  • High county-based income caps
  • Predictable repayment schedule
  • Strong option for first-time and repeat buyers

Related Kentucky Homebuyer Resources

Get Pre-Approved for KHC in 24 Hours

Call/Text: 502-905-3708
Email: kentuckyloan@gmail.com
Apply Online: http://www.mylouisvillekentuckymortgage.com

Joel Lobb, Mortgage Broker FHA, VA, USDA, KHC
911 Barret Ave, Louisville, KY 40204
NMLS #57916 | Company NMLS #1738461 | Equal Housing Lender

2 thoughts on “New KHC Income Limits 2026: $12,500 Down Payment Assistance”

Comments are closed.