Thursday, July 28, 2011

Louisville Kentucky Down Payment Assistance and Closing Costs Assistance

Louisville Kentucky Down Payment Assistance and Closing Costs Assistance
Kentucky Housing Corporation (KHC) is one of the few lenders where home buyers can receive down payment and closing costs assistance, which are often the largest barriers to homeownership for those who can afford the monthly mortgage payment.  KHC recently increased the amount a home buyer can receive through its Regular Down payment Assistance Program (DAP).
Regular DAP is a loan, up to $6,000, which is repayable over ten years at a 6 percent interest rate.  It is available to all KHC first-mortgage loan recipients who are first-time home buyers in non-targeted counties and first- and second-time home buyers in targeted counties.
“By increasing the amount of Regular DAP, we can open the door to homeownership for more families who without this assistance, could not afford the costs associated with purchasing a home,” said Richard L. McQuady, KHC chief executive officer.
In addition to Regular DAP, KHC also offers several other DAPs for home buyers:
HOME DAP
  • Purchase price up to $195,700.
  • Assistance up to $4,500.
  • No monthly repayment; forgiven over five years.
  • Existing homes only.
  • Borrowers must meet HOME-income guidelines.
HOME Special Program
  • Purchase price up to $195,700.
  • Assistance up to $10,000.
  • No monthly repayment; forgiven over five years.
  • Existing homes only.
  • Borrowers must meet HOME-income guidelines.
  • Eligible borrowers include:
    • Households that include a person with a permanent disability and who receives disability income (SSI, SSDI, Veterans Disability etc.).
    • Households where at least one of the home buyers is age 62 or older.
HOME Family Program
  • Purchase price up to $195,700.
  • Assistance up to $10,000.
  • No monthly repayment; forgiven over five years.
  • Existing homes only.
  • Borrowers must meet HOME-income guidelines.
  • Eligible borrowers include:
    • Single- and two-parent households that have at least one dependent child under the age of 18 living in the household and who are first-time home buyers (have not owned a home or had an ownership interest in a home within the last 3 years).
Home buyers must work with a KHC-approved lender and receive a KHC home loan to receive DAP.  A full list of lenders is available on KHC’s Web site under 





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