KY HB580

Establishes a first-generation homebuyer trust fund in the State Treasury as a revolving account administered by the Kentucky Housing Corporation to help eligible buyers acquire a principal residence

Defines "first-generation homebuyer" as someone who has never owned residential property and whose parents/guardians never owned property, or who was in foster care, was an emancipated youth, or was a homeless/unaccompanied youth

Provides forgivable loans of up to $5,000 for down payment, closing costs, mortgage insurance, or interest rate buy-down, with the amount adjusted over time for inflation

Limits eligibility to households earning 120% or less of the county median income and requires recipients to complete financial education and homebuyer counseling

Recipients must occupy the home as their principal residence for at least 3 years; the loan must be repaid if the property is sold within 3 years or converted to non-owner occupancy