COVINGTON, Ky. — Eligible home buyers 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 are now able to apply for more funds due to a recent Board of Commissioners vote.
Previously, buyers could only apply to receive $7,500.
Applicants who meet income and credit requirements are given a 10-year loan of up to $10,000. The interest rate is 0%. The money can be used toward a down payment, closing costs, settlement charges, and/or to “buy down” the interest rate on the primary mortgage. It’s the second time the amount of assistance has increased in three years.
The goal is to help buyers stay in homes too. Each year a buyer stays in their house, 10% of the loan is forgiven.
Covington has set aside $350,000 for the program in the city for the fiscal year that began July 1.
The program has helped with 386 purchases in Covington since 2014.
“There's increased stability for all the neighborhoods,” said John David Hammons, Covington’s CDBG/HOME Coordinator.
“They can also live work and play in Covington, so there's an increased economic benefit. The schools are helped when the children get to stay in one place to a certain extent because the parents are able to keep the costs down by being able to stay where they currently live.”
You can find more information on the program, including eligibility requirements HERE.
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