Home Purchase Down-Payment Assistance Program

through the Northern Kentucky Home Consortium

The City of Dayton is a participant in the Northern Kentucky Homebuyer Assistance Program, a federally funded program designed to increase the number of homeowners in Dayton and other participant cities in the Northern Kentucky HOME Consortium, which also include the cities of Covington, Bellevue, Ludlow, Erlanger, Independence, Florence, and Newport.

Under this program, which is managed by the City of Covington, households that meet income, credit, and other requirements may obtain zero-interest, deferred/forgivable loans to assist with the purchase of an owner-occupied home. The loans can be used to cover lender-required down payments, customary closing costs, and settlement charges. The loan will be forgiven if the owners occupy the homes as their principal residences for a period of five years from the date of purchase.

• Targeted funding: Home purchases in the cities listed above.
• Income threshold: Gross annual household income must be at or below 80 percent of the Area Media Income. (See link below for more details about these income limits). Borrowers must attend a HUD-approved homebuyer education course.
• Types of properties: All properties must be one or two units, owner-occupied or vacant, and meet minimum housing standards.
• Loan amount: Up to $10,000 to cover the lender-required down payment and customary settlement charges to the borrower.
• Inter rate/loan term: 0 percent; 10-year term.
• Monthly payments/forgiveness: The loan will be forgiven if the borrower occupies the property for ten years after purchase. Any remaining loan balance is recaptured upon sale, transfer, or vacation of the property.

Learn more about the Northern Kentucky HOME Consortium and get a link to apply to participate in the program.