Covington offers down payment assistance for homebuyers

COVINGTON, Ky. — Eligible homebuyers can now receive up to $10,000 in financial assistance from the City of Covington.

The city has offered financial assistance to eligible buyers for years, primarily to help with down payments. Buyers can now request more funds due to a recent vote by the Board of Commissioners.

Previously, buyers could only request to receive $7,500.

Applicants who meet income and credit requirements are granted a 10-year loan of up to $10,000. The interest rate is 0%. The money can be used for a down payment, closing costs, settlement costs, and/or to “lower” the interest rate on the primary mortgage. This is the second time that the amount of aid has increased in three years.

The goal is to help buyers stay in homes too. Every year a buyer stays in their home, 10% of the loan is forgiven.

Covington has set aside $350,000 for the city’s program for the fiscal year that began July 1.

The program has contributed to 386 purchases at Covington since 2014.

“There is increased stability for all neighborhoods, said Covington CDBG/HOME coordinator John David Hammons.

“They can also live, work and play in Covington, which is an increased economic benefit. Schools are helped when children can stay in one place to some extent, as parents are able to cut costs by being able to stay where they currently live. »

You can find more information about the program, including eligibility requirements HERE.

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