Thursday, July 4, 2013

Kentucky Housing and KHC Down Payment and Closing Costs Assistance

Down Payment and Closing Costs Assistance

Kentucky Housing and KHC Down Payment and Closing Costs Assistance



Down Payment and Closing Costs Assistance

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Kentucky Housing recognizes that down payments, closing costs and prepaids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your needs.

Neighborhood Down payment Assistance Program (DAP) 


Kentucky Housing Corporation (KHC) received $3 million from the National Mortgage Foreclosure Settlement Fund to offer a new mortgage program for down payment and closing costs assistance. This program is only available until all funds are gone.
Repayable second mortgage up to $10,000
  • 1 percent interest rate for 30 years.
  • Income must be less than $124,775 (terms and conditions apply).
 
To be eligible for the Neighborhood DAP, either:
  • The property must be in the process of disposition option (i.e., deed-in-lieu, short sale) or foreclosed upon.
  • The newly-constructed or existing property has been for sale for at least six months.
  • The home buyer has experienced a foreclosure and credit qualifies to purchase another home.

Regular DAP

  • Purchase price up to $243,000.
  • Assistance in the form of a loan up to $6,000 in $100 increments.
  • Repayable over a ten-year term at 5.50 percent.  A DAP of $6,000 over ten years at 5.50 percent interest would equal a payment of $65.12.
  • Available to all KHC first-mortgage loan recipients.

Affordable-DAP (available July 2, 2013)

  • Purchase price up to $243,000.
  • Assistance up to $4,500
  • Repayable over a ten-year term at 1.00 percent. 
  • Borrowers must meet Affordable DAP Household Income Limits.

More about down payment and closing costs

  • No liquid asset review and no limit on borrower reserves.
  • Specific credit underwriting standards may apply to down payment programs.


The Affordable DAP will not require a Housing Quality Standards inspection, additional HOME forms, or a liquid asset test.  All KHC Program Guides have been updated to reflect these changes.   
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.com









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