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Home buyer help · Kentucky

Buying a home in Kentucky: the help you may qualify for.

Down payment assistance, property tax exemptions and veteran benefits in Kentucky, gathered from official state sources and explained in plain English. Every program has its own rules, so check with the agency before you count on it.

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Last checked November 11, 2026Sources state agencies

Down payment and closing cost help

From the Kentucky Housing Corporation (KHC).

  • Regular DAP

    Up to $12,500

    Repaid at 4.75% over 15 years (some KHC materials still show $10,000 at 3.75% over 10 years), with a KHC first mortgage.

  • Affordable DAP

    For lower incomes

    Lower-cost assistance for buyers under KHC's lower income limits; ask a KHC lender for current terms.

Who qualifies: Price and income limits, first come, first served while funds last, through a KHC-approved lender.

Property tax exemptions and credits

Exemptions lower your home’s taxable value or your bill. Most aren’t automatic: you apply with your county property valuation administrator (PVA). Kentucky’s official exemptions information.

No exemption for every homeownerKentucky doesn’t have a statewide property tax exemption for every homeowner. Its benefits are for the groups below. Some cities and counties add their own, so ask your county property valuation administrator (PVA).

For homeowners 65 and older

  • Homestead exemption (65+ or totally disabled)

    $49,100 off your home's assessed value (2025 and 2026)

    For homeowners 65 or older (starting the year you turn 65) or totally disabled, including service-connected totally disabled veterans. The amount is updated every two years.

    How to apply: With your county property valuation administrator (PVA). (KRS 132.810)

Want to see which ones fit you? Answer a few questions in the property tax exemptions checker.

If you serve or served

  • VA home loan: available in every state, often with no down payment and no monthly mortgage insurance. You’ll need a Certificate of Eligibility. See VA home loans.

Your next steps

  1. Work out a monthly cost you’re comfortable with in the home cost calculator. It also lists Kentucky’s programs with the loans you may qualify for.
  2. Talk with a free or low-cost HUD-approved housing counselor. Find one near you.
  3. Ask each lender which of these programs they work with, and compare Loan Estimates from at least three.
  4. Follow the step-by-step home buyer’s guide from budget to keys.

Common questions

Does Kentucky have down payment help for home buyers?

Yes. Programs from the Kentucky Housing Corporation (KHC) include Regular DAP, Affordable DAP. Price and income limits, first come, first served while funds last, through a KHC-approved lender. Funding and rules change often, so check with the agency or a participating lender.

Does Kentucky have a homestead or property tax exemption for homeowners?

Kentucky doesn't have a statewide exemption for every homeowner. Its property tax benefits are for groups such as seniors, veterans and people with disabilities. Ask your county property valuation administrator (PVA) about local programs.

Is there help for veterans buying a home in Kentucky?

VA home loans are available in every state, often with no down payment.

Sources: Kentucky Housing Corporation (KHC) and Kentucky’s property tax office, linked above. Last checked November 11, 2026. Programs, amounts, income limits and funding change often, sometimes every year. Know Before You Own doesn’t recommend lenders or take referral fees. This page is general education, not legal, tax or lending advice. See other states.