All MRB Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.
The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.
To qualify, you must meet KHC’s regular , make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history.
Some MRB KHC loans are subject to a Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.
Conventional
Insured by approved mortgage insurance company.
Minimum credit score of 660 or better.
Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance.
FHA
Insured by the Federal Housing Administration.
Down payments as little as 3.5 percent.
Can use DAP for 3.5 percent down payment requirement.
Upfront and monthly mortgage insurance.
Minimum credit score of 640.
VA
Guaranteed by the Veterans Administration for qualified military veterans.
No down payment if the property appraises for the sale price or greater.
Credit underwriting is flexible.
Minimum credit score of 640.
No monthly mortgage insurance payments.
RHS
Guaranteed by Rural Housing Services (RHS).
Home must be located in a rural area as defined by RHS.
No down payment if the property appraises for the sale price or greater.
Minimum credit score of 640.
Down Payment and Closing Costs Assistance |  |
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.
Regular Down payment Assistance Program (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 6 percent. A DAP of $6,000 over ten years at 6 percent interest would equal a payment of $66.61.
- Available to all KHC first-mortgage loan recipients.
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.
More about down payment and closing costs
- No liquid asset review and no limit on borrower reserves for Regular DAP.
- Borrowers may retain two months’ house payments in reserve while using available funds first before looking for any form of HOME DAP assistance.
- Specific credit underwriting standards may apply to down payment programs.
KHC Loan Programs | |
MRB
- All MRB Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.
- The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.
- To qualify, you must meet KHC’s regular MRB income guidelines, make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history.
- Some MRB KHC loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.
Conventional
- Insured by approved mortgage insurance company.
- Minimum credit score of 660 or better.
- Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance.
FHA
- Insured by the Federal Housing Administration.
- Down payments as little as 3.5 percent.
- Can use DAP for 3.5 percent down payment requirement.
- Upfront and monthly mortgage insurance.
- Minimum credit score of 640.
VA
- Guaranteed by the Veterans Administration for qualified military veterans.
- No down payment if the property appraises for the sale price or greater.
- Credit underwriting is flexible.
- Minimum credit score of 640.
- No monthly mortgage insurance payments.
RHS
- Guaranteed by Rural Housing Services (RHS).
- Home must be located in a rural area as defined by RHS.
- No down payment if the property appraises for the sale price or greater.
- Minimum credit score of 640.
GNMA Secondary Market
- All GNMA KHC first mortgage loans are for a 30-year term at a fixed rate of interest.
- The home you purchase through KHC must be occupied as your principle residence while the loan debt is outstanding.
- To qualify, you must meet KHC's GNMA income guidelines, make a down payment, or qualify for down payment assistance, be a U.S. citizen or legal alien and have an acceptable credit history.
FHA
- Insured by the Federal Housing Administration.
- Down payments as little as 3.5 percent.
- Can use DAP for 3.5 percent down payment requirement.
- Upfront and monthly mortgage insurance.
- Minimum credit score of 640.
VA
- Guaranteed by the Veterans Administration for qualified military veterans.
- No down payment if the property appraises for the sale price or greater.
- Credit underwriting is flexible.
- Minimum credit score of 640.
- No monthly mortgage insurance payments.
RHS
- Guaranteed by Rural Housing Services (RHS).
- Home must be located in a rural area as defined by RHS.
- No down payment if the property appraises for the sale price or greater.
- Minimum credit score of 640.
Two FHA Refinance Options
- Credit qualifying Streamline Refinance and Rate/Term Refinance
- Insured by the Federal Housing Administration
- Cash back to borrower not to exceed $500
- Upfront and monthly mortgage insurance
- Minimum credit score of 640
Home Buyer Tax Credit
KHC's Home Buyer Tax Credit is available through Mortgage Credit Certificates (MCC), which reduce the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax. One-time fee of $500 or reduced to $200 if through KHC's GNMA Secondary Market First Mortgage Program. Not valid with MRB loan programs.
Special First Mortgage Loan Programs
The Lottery for Special Funding is opened once a year. The funds are allocated for persons meeting income and all MRB Guidelines. These limited funds are available, usually in July, on a first-come, first-served basis.
Guidelines
- Must be a first time home buyer, unless property is located in a targeted county.
- Interest rate fixed at 3.00 percent based on minimum ratios 29/41 percent.
- Eligible households:
- Single parents (at least one dependent under the age of 18 must live in the home.)
- Households with a person who has a permanent disability and who receives some form of disability income (SSI, SSDI, Veterans Disability etc.).
- Households where at least one of the home buyers is age 62 or older.
- Gross Annual Household Income guidelines:
- $28,000 for a household of 1 or 2 people; or
- $33,000 for a household of 3 or more people.
- All household occupants (18 years and older) with income must be included on loan and be credit ready.
- Must use all but two months’ reserves of borrower’s own funds.
- Existing or new construction property with a purchase price limit of $115,000
- Zero Point Rate
- Only FHA, VA and RHS – 640 credit score and AUS Approval
- 60 Day Lock
- Kentucky Housing’s Regular and HOME DAP loan program may be used for down payment and closing cost assistance.
Applying for a Kentucky Housing loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing loan.
KENTUCKY HOUSING CORPORATION
2011 MRB GROSS ANNUAL HOUSEHOLD INCOME LIMITS
Effective June 14, 2011
The income limitations listed below are imposed by federal law.
Failure to comply with them may create adverse consequences for Kentucky Housing Corporation and its bondholders.
Funding Source: New Bond Funds (Purchase Price Limit – $243,000)
Mortgage Credit Certificates (MCC)
A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.
•Kentucky Housing’s DAP loan program may be used for down payment and closing cost assistance.
Applying for a Kentucky Housing loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing loan.
Second Mortgage Products
How To Qualify For A Kentucky Housing Corporation Mortgage?
Qualifying for a Kentucky Housing Corporation Mortgage is as easy as qualifying for a mortgage except these loans are meant for those who have low to moderate incomes and need a little extra help paying for their mortgage. There are income limits and home purchase price limits that apply depending on the family size of the home buyer and depending on the location of the property to be purchased. Eligible home buyers must intend to live in the home being purchased as their primary residence. You must also be employed or have some sort of documentable income that will continue.
Are There Down Payment and Closing Cost Assistance Programs Available In Kentucky?
The Kentucky Housing Corporation offers a variety of down payment and closing cost assistance programs to qualified and eligible home buyers. There are primarily 4 programs that KHC offers to home buyers that use KHC’s first mortgage loans to purchase a home. To obtain and qualify for any of these programs interest home buyers must apply for these programs through participating lenders.
Here are the 4 programs (summarized from the Kentucky Housing Corporation website):
Regular Down Payment Assistance Program (DAP) – This program has a statewide purchase price cap of $237,000 and offers down payment assistance in the form of a loan that is paid back over 10 years. A qualified home buyer using a KHC first mortgage program can get up to 4% of the purchase price in this program to be applied to their down payment and closing cost needs.
HOME – Down Payment Assistance – This program has a statewide purchase price limit of $195,700. Up to $4,500 in down payment and closing cost assistance is available to qualified and eligible home buyers. There are no monthly payments for this program and if the home buyer remains in their home for 5 years the home buyer will not be required to pay any of the money back. Income limits apply based on the county or metropolitan area where the home being purchased is located.
HOME Special Program - This program has a statewide purchase price limit of $195,700, and provides up to $10,000 in assistance to eligible home buyers. The money from this program doesn’t not require repayment if the home buyer remains in the home for 5 years. No monthly payments are required for this program. Households that include a person with a permanent disability and who receives SSI, SSDI, Veterans Disability, or some other form of disability income are eligible for this program provided they meet the qualification standards of the type of mortgage they apply for. This program is also available to home buyers over the age of 62. Home buyers using this program will have to meet income cap requirements.
HOME Family Program – There is a statewide home price limit of $195,700 for this program and it is only available for single and two parent families where there is at least one dependent child under the age of 18 living in the home. Furthermore, this program is only available for first time home buyers. Eligible home buyers can get up to $10,000 in this program and if they stay in their home for at least 5 years the assistance is forgiven. There are no monthly payments for this program. Home buyers using this program will have to meet income cap requirements.
KENTUCKY HOUSING CORPORATION
2010 GROSS ANNUAL HOUSEHOLD INCOME LIMITS
Effective November 8, 2010
The income limitations listed below are imposed by federal law.
Failure to comply with them may create adverse consequences for Kentucky Housing Corporation and its bondholders.
Funding Source: New Bond Funds (Purchase Price Limit – $243,000)
Person(s) per household (1 or 2) (3 or more) Person(s) per household (1 or 2) (3 or more)
Anderson 67,360 77,470 Jefferson 74,160 86,520
Ballard 64,320 75,040 Jessamine 67,220 77,310
Barren 58,200 67,900 Kenton 83,400 97,300
Boone 83,400 97,300 Larue 66,720 77,840
Bourbon 78,600 91,700 Laurel 53,000 60,950
Boyd 58,200 67,900 Livingston 61,440 71,680
Boyle 66,360 77,420 Lyon 62,040 72,380
Bracken 83,400 97,300 Madison 66,480 77,560
Bullitt 74,160 86,520 Marshall 67,560 78,820
Caldwell 54,840 63,980 McCracken 64,920 75,740
Calloway 62,040 72,380 McLean 67,320 78,540
Campbell 83,400 97,300 Meade 62,280 72,660
Carroll 68,400 79,800 Mercer 66,960 78,120
Christian 63,000 73,500 Muhlenberg 53,000 60,950
Clark 78,600 91,700 Nelson 67,080 78,260
Daviess 67,620 78,540 Oldham 74,160 86,520
Edmonson 64,560 75,320 Pendleton 83,400 97,300
Fayette 67,220 77,310 Scott 78,600 91,700
Franklin 67,180 77,260 Shelby 75,770 87,135
Gallatin 83,400 97,300 Simpson 66,120 77,140
Garrard 64,080 74,760 Spencer 74,160 86,520
Grant 64,920 75,740 Taylor 53,000 61,740
Graves 58,440 68,180 Trigg 63,000 73,500
Greenup 58,200 67,900 Trimble 74,160 86,520
Hancock 67,320 78,540 Union 66,960 78,120
Hardin 66,720 77,840 Warren 64,560 75,320
Harrison 65,400 76,300 Webster 73,680 85,960
Henderson 68,040 78,250 Woodford 67,220 77,310
Henry 74,160 86,520
For all other counties not listed above: 63,600 (1 or 2 persons) 74,200 (3 or more persons)
Funding Source: New Construction Program for Single Parents, Disabled, and Elderly Households
Income Limit
$28,000 for households of 1-2 persons or $33,000 for households of 3 or more people
Purchase Price Limit
$115,000
Mortgage Revenue Bond Programs – KHC Program Guide – November 8, 2010 Page – 8 of 9
2010 GROSS ANNUAL HOUSEHOLD INCOME LIMITS
WHEN HOME PROGRAM FUNDS ARE USED
Effective May 20, 2010
Purchase Price Limit When HOME Funds Are Used – $195,700
Person(s) (1) (2) (3) (4 or more)
Adair, Bath, Bell, Breathitt, Carter, Casey, Clay, Clinton, Cumberland, Elliott, Estill, Floyd,
Fulton, Green, Harlan, Hart, Jackson, Johnson, Knott, Knox, Laurel, Lawrence, Lee, Leslie,
Letcher, Lewis, Lincoln, Magoffin, Martin, McCreary, Menifee, Metcalfe, Monroe, Morgan,
Owsley, Perry, Pike, Powell, Pulaski, Rockcastle, Russell, Wayne, Whitley, and Wolfe
23,800 27,200 30,600 34,000
Bullitt, Henry, Jefferson, Oldham, Spencer, and Trimble 34,650 39,600 44,550 49,450
Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford 36,700 41,950 47,200 52,400
Boone, Bracken, Campbell, Gallatin, Kenton, and Pendleton 38,950 44,500 50,050 55,600
Other Counties
Person(s) (1) (2) (3) (4 or more) Person(s) (1) (2) (3) (4 or more)
Allen 26,750 30,550 34,350 38,150 Larue 31,150 35,600 40,050 44,500
Anderson 36,300 41,500 46,700 51,850 Livingston 28,700 32,800 36,900 40,950
Ballard 30,050 34,350 38,650 42,900 Logan 28,500 32,600 36,650 40,700
Barren 27,200 31,050 34,950 38,800 Lyon 28,950 33,100 37,250 41,350
Boyd 27,200 31,050 34,950 38,800 Madison 31,050 35,500 39,950 44,350
Boyle 31,000 35,400 39,850 44,250 Marion 25,900 29,600 33,300 36,950
Breckinridge 26,550 30,350 34,150 37,900 Marshall 31,550 36,050 40,550 45,050
Butler 25,700 29,350 33,000 36,650 Mason 27,100 30,950 34,800 38,650
Caldwell 25,600 29,250 32,900 36,550 McCracken 30,350 34,650 39,000 43,300
Calloway 28,950 33,100 37,250 41,350 McLean 31,450 35,950 40,450 44,900
Carlisle 24,300 27,750 31,200 34,650 Meade 29,050 33,200 37,350 41,500
Carroll 31,950 36,500 41,050 45,600 Mercer 31,300 35,750 40,200 44,650
Christian 29,400 33,600 37,800 42,000 Montgomery 27,550 31,450 35,400 39,300
Crittenden 26,450 30,200 34,000 37,750 Muhlenberg 24,300 27,800 31,250 34,700
Daviess 31,450 35,950 40,450 44,900 Nelson 31,300 35,800 40,250 44,700
Edmonson 30,150 34,450 38,750 43,050 Nicholas 25,800 29,450 33,150 36,800
Fleming 24,200 27,650 31,100 34,550 Ohio 25,200 28,800 32,400 36,000
Franklin 36,800 42,050 47,300 52,550 Owen 28,200 32,200 36,250 40,250
Garrard 29,900 34,200 38,450 42,700 Robertson 25,800 29,450 33,150 36,800
Grant 30,350 34,650 39,000 43,300 Rowan 24,950 28,500 32,050 35,600
Graves 27,300 31,200 35,100 38,950 Shelby 38,850 44,400 49,950 55,500
Grayson 24,050 27,450 30,900 34,300 Simpson 30,900 35,300 39,700 44,100
Greenup 27,200 31,050 34,950 38,800 Taylor 24,750 28,250 31,800 35,300
Hancock 31,450 35,950 40,450 44,900 Todd 26,150 29,900 33,650 37,350
Hardin 31,150 35,600 40,050 44,500 Trigg 29,400 33,600 37,800 42,000
Harrison 30,550 34,900 39,250 43,600 Union 31,300 35,750 40,200 44,650
Henderson 34,400 39,300 44,200 49,100 Warren 30,150 34,450 38,750 43,050
Hickman 26,900 30,750 34,600 38,400 Washington 28,500 32,550 36,600 40,650
Hopkins 27,650 31,600 35,550 39,450 Webster 34,400 39,300 44,200 49,100
Mortgage Revenue Bond Programs – KHC Program Guide – November 8, 2010 Page – 9 of 9
Categories: KHC 2011 updated Guidelines, KHC Down payment Assistance Program Kentucky Housing, KHC Mortgage Rates / Kentucky Housing Rates Tags: Federal Housing Administration, Housing First, Insurance, Kentucky, Loan, Mortgage Credit Certificate, Mortgage loan, Rural Housing Service
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