COVINGTON, Ky. — For the second time in three years, the city of Covington is raising the maximum amount of financial help available to qualifying families looking to buy a home.

Homebuyers can now get up to $10,000 to help with a down payment and other upfront costs, city officials announced Tuesday. The money comes in the form of a 10-year loan, but the interest rate is 0% and 10% of the loan is forgiven or written off each year the buyer stays in that home.

Those who meet income and credit requirements are given a 10-year loan of up to $10,000 to be used toward a down payment, closing costs, settlement charges, and/or to “buy down” the interest rate on the primary mortgage.

Applicants must receive housing counseling to prepare them for the buying process and understand the long-term costs of owning a home, according to program documents.

The loan amount had previously been increased in 2020 to $7,500 from $5,000.

“Home prices are higher, interest rates are high, and the competition for homes continues to get worse,” said John David Hammons, who coordinates the Homebuyer Assistance Program for Covington. “With this $2,500 increase, we hope to expand both the number of people financially able to buy a home and the number of homes available to them.”

Since 2014, over 386 home-buyers have utilized the program, with properties spread throughout nearly every neighborhood in Covington. The largest numbers are in the residential neighborhoods of Latonia, South Covington, Peaselburg, and Austinburg.

Covington has set aside $350,000 for the program in the city for the fiscal year that began July 1, city officials said.

The Homebuyer Assistance Program is one of several programs and initiatives the City operates to promote affordable housing in Covington.

You can learn more about the Homebuyer Assistance Program here.