COVINGTON, Ky – The Northern Kentucky HOME Consortium is making homeownership more attainable for residents of Covington, Ludlow, Erlanger, Independence, Florence, Newport, Bellevue, and Dayton by increasing the maximum assistance available through its Homebuyer Assistance Program from $10,000 to $15,000.
The increase, approved by the Covington Board of Commissioners, reflects the growing financial challenges facing prospective homebuyers and better aligns the program with current market conditions.
Funded through the federal HOME Program and administered by the Northern Kentucky HOME Consortium through Covington’s Neighborhood Services Department, the Homebuyer Assistance 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.
“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 increase comes as housing costs continue to climb both nationally and locally. Elevated mortgage interest rates, rising home prices, and increasing property insurance costs have significantly increased the amount of cash many buyers need at closing.
In Program Year 2024 - 25, the average amount of assistance that Program participants needed was $14,407. In 2026 - 27, that average increased to $15,182, exceeding the program’s previous $10,000 cap and demonstrating the need for additional support.
The adjustment does not change the program’s eligibility requirements or underwriting standards. Instead, it allows the City and the Northern Kentucky HOME Consortium to better utilize available federal funding and ensure assistance remains meaningful in today’s housing market.
Eligible households may receive up to $15,000 in assistance through a zero-interest loan that 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.
Residents interested in applying can learn more and submit an application online here.