Down Payment Assistance Program

Before beginning application process, please carefully review the Down Payment Assistance Program Handbook and other applicant resources.

DPA Brochure
Program Handbook

About the Down Payment Assistance Program

The Louisville Metro Down Payment Assistance Program provides low- to moderate-income homebuyers with down payment and closing cost assistance for purchasing a home in the Louisville Metro area. Funds can be applied to the purchase of an existing or newly constructed home. The program is not limited to first-time homebuyers, but prospective homebuyer(s) may NOT currently own a home.

Down Payment Assistance is in the form of a partially forgivable loan with 0% interest. Homebuyers must occupy the purchased home as their primary residence for a period of 5 – 15 years, depending upon the amount of assistance received. By the end of that specified period, 50% of the loan shall be forgiven. The remaining balance is not due until the sale of that home.   The maximum amount of assistance per homebuyer will be no more than 20% of the purchase price, but also based on the need the individual buyer. Section 8 Homeownership clients are encouraged to apply.  

Goals of the Down Payment Assistance Program
  • Encourage homeownership, throughout Louisville Metro, which is economical to low-moderate income consumers in order to assist in preventing future foreclosures.
  • Encourage mixed-income neighborhoods and the de-concentration of poverty.
  • Encourage homeownership in Metro’s Neighborhood Revitalization Strategy Area – Russell.
  • Assist homebuyers in becoming informed consumers in order to successfully navigate real estate transactions and understand the responsibility of homeownership.
  • Encourage reinvestment in Louisville Metro’s vacant and abandoned properties.
  • Household income at or below 80% of the area median income.
Persons in Household 1 2 3 4 5 6
80% AMI  $47,450   $54,200   $61,000   $67,750   $73,200   $78,600 


  • Homebuyer(s) already pre-approved for a mortgage from a local financial institution.
  • Homebuyer(s) credit - no unpaid collections, past due balances or un-discharged bankruptcies. (Exception: Medical collections up to $10,000.00.)
  • Homebuyer(s) has at least $1,500 in savings.
  • Homes eligible for assistance must meet the Home Ownership Value Limits below.

Existing Homes

 1-unit   2-unit (duplex)  3-unit (triplex)  4-unit (fourplex)
$220,000 $249,000 $302,000 $374,000


New Homes

 1-unit   2-unit (duplex)  3-unit (triplex)  4-unit (fourplex)
$257,000 $329,000 $399,000 $494,000
How to Apply
  1. Complete homebuyer counseling (6-hr minimum) from a HUD-approved counseling agency. If applying with co-applicant, both must complete. Married couples must apply as co-applicants.
  2. Apply to the Down Payment Assistance Program by clicking the green button below. Please allow 30 days for Metro review and verification.
  3. Homebuyer(s) receives letter of eligibility, stating entrance or denial into Homebuyer Assistance Program.
  4. Homebuyer(s) engages Realtor to assist in home search.
  5. Upon an accepted sales contract, homebuyer(s) submits Home Purchase Packet, executed sales contract, and primary loan documents to Metro.
  6. Metro staff underwrites the loan and presents to the Case Review Board.
  7. Homebuyer(s) receives conditional commitment letter from Metro, stating the amount of assistance available to purchase that home.
  8. Metro Office of Housing inspector coordinates with Realtor. Home must receive a passing inspection in order to receive Metro assistance.
  9. Lender, Realtor, and Metro coordinate with the homebuyer to close on the home.
  10.  Apply Now

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