COVINGTON, Ky. — Covington's Board of Commissioners has approved an increase to the maximum amount available in Homebuyer Assistance Program loans to make it easier for people in the area to buy a home.
The cap for the loans will rise from $10,000 to $15,000 for residents in Covington, Ludlow, Erlanger, Independence, Florence, Newport, Bellevue, and Dayton, city leaders said in a release. That increase reflects "growing financial challenges" prospective homebuyers face and "better aligns the program with current market conditions," the release states.
“By increasing the maximum assistance amount, we're ensuring this program continues to meet the real needs of today's buyers and helps more residents establish roots in our neighborhoods,” Covington Mayor Ron Washington said.
The federal HOME Program funds the loans, which the Northern Kentucky HOME Consortium administers through Covington’s Neighborhood Services Department. The program provides qualified households with zero-interest, deferred and forgivable loans to help cover lender-required down payments, closing costs, and settlement charges associated with purchasing an owner-occupied home.
Officials point to higher mortgage interest rates, rising home prices and increasing property insurance costs as reasons housing costs are rising locally and nationally.
During the program's 2024-2025 year, the average amount of assistance program participants needed was $14,407. For 2026-2027, that total rose to $15,182, the release states.
The zero-interest loan is forgiven over 10 years on a pro-rata basis, with one-tenth of the loan forgiven for each year the homeowner occupies the property as their primary residence.
Applicants must meet income, credit, and other program requirements.
Click here for more information or to submit an application.
