Kentucky Housing DREAM Downpayment Loan

Kentucky Housing Corporation

Available Down Payment

About This Program

Kentucky Housing DREAM Downpayment Loan is available to homeowners in Owensboro, KY.

Forgivable second mortgage loan to assist with down payment and closing costs for Kentucky homebuyers. Forgiven after 5 years of homeownership. Must be combined with KHC first mortgage product. Available in Owensboro and statewide.

Forgivable loan after 5 years; 20% forgiven per year

Official program page checked live on 2026-06-22.

Data last verified 2026-06-09. How we verify our data.

In Owensboro, KY, you can combine this program with other local help to cut your cost:

Key Details

  • Forgivable loan up to $6,000 for down payment
  • Forgiven after 5 years of homeownership
  • Must combine with KHC first mortgage
  • Income and purchase price limits apply
  • Homebuyer education required

How to Apply

A grant-savvy contractor in Owensboro, KY can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

Your application paperwork

Documents you will likely need

  • Proof you own and live in the home (deed, recent mortgage statement, or property tax bill).
  • A government-issued photo ID for every owner on title.
  • Household income proof (recent pay stubs, last year's tax return, or benefit award letters for everyone in the home).
  • The program's own application form, completed (use the official link or phone number on this page).

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Year-round while funds available

Questions about this program?

Ask us. It is free, and a real person answers within a business day.

Email us about this program

Frequently asked questions

How much can Kentucky Housing DREAM Downpayment Loan provide in Owensboro, KY?

Up to $6,000 forgivable loan.

Who qualifies for Kentucky Housing DREAM Downpayment Loan in Owensboro?

Kentucky Housing DREAM Downpayment Loan is open to homeowners in Owensboro, KY.

How do I apply for Kentucky Housing DREAM Downpayment Loan in Owensboro, KY?

Apply directly with Kentucky Housing Corporation using the official program link on this page or call (800) 633-8896. There is no middleman and no fee.

Need a Contractor for This Grant?

Grant-approved contractors understand the documentation, inspections, and timelines, so your funding releases on schedule.

Find More Programs in Owensboro, KY

This is just one of many grants, rebates, and free programs available. Stack them together to maximize your savings.

See All Programs