KHC Loan Programs

KHC Loan Programs








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.



KHC’s First Mortgage Loan Products


Federal Housing Administration (FHA)

•Minimum 640 credit score required.
•Financing to 96.50% of lesser of sales price or appraised value.
•All KHC DAPs and other KHC-approved secondary financing may be used.
•Maximum 6% seller-paid items.
•Maximum ratios of 40/45 with AUS approval.
•FHA’s Appraiser Independence rules apply. (see page 4)
•All borrowers must be scored by TOTAL and receive approve/eligible or accept/accept.
•Lender must follow the FHA maximum mortgage limits for particular area – see
Upfront and Annual Mortgage Insurance Premiums
30-Year Loan Term
LTV less than or equal to 95% 1.75% annual 1.20 monthly
LTV greater than 95% 1.75% annual 1.25 monthly

Conventional

• Minimum 660 credit score required
• Maximum loan-to-value (LTV) ratio is 80%.
• Maximum ratios 40/45 with AUS approval.
• No down payment assistance products may be used. Borrower must meet down payment requirements with their own
funds or a gift.
• Federal Home Loan Bank monies allowed once borrower meets the 20% down payment requirement. Must be entered as
subordinate financing in DU/LP.
• Pre-purchase education required as per AUS findings.
• Not available for manufactured housing.
• Appraiser Independence required (see page 4).
• KHC does not presently have a product for 81% LTV or greater.

Rural Housing Services (RHS)
 Minimum 640 credit score required.
• Financing to 100% of the appraised value, plus guarantee fee of 2.0%/0.3% annual fee.
• All KHC DAP programs and other KHC-approved secondary financing may be used.
• No maximum on seller-paid items.
• Ratio requirements and guarantee fee per agency guidelines.
• KHC will accept Government Underwriting System (GUS) findings, including reduced documentation and, with
approval, expanded ratios up to 40/45.

Veteran’s Administration (VA)

•Minimum 640 credit score required.
•Financing to 100% of the lesser of the appraised value or sale price.
•All KHC DAP programs and other KHC-approved secondary financing may be used.
•Maximum 4% seller-paid items.
•Ratio requirements and funding fee per agency guidelines
Maximum ratios of 40/45% with AUS Approval




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 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.

New Bond Special Funding Program
Effective today, Thursday, September 13, borrowers are no longer required to be a single-parent, permanently disabled and receiving disability income, or be 62 years or older to be eligible for the lower 3.00 percent fixed rate for 30 years.  The lower-income restriction is the determining factor:
  • Gross annual household income of $35,000 or less.
  • Must be a first a first-time home buyer, unless the property is located in a targeted county.
  • Regular Down payment Assistance Program (DAP), Neighborhood DAP, and HOME DAP are available.
  • 3.00 percent interest rate includes a DAP.
  • Existing or new construction property.
  • Purchase price limit of $115,000.

Online Database Tracks Certified Real Estate Agent ReferralsKentucky Housing Corporation (KHC) developed two new information fields in Loan Connection Services to be completed at time of reservation.  Lenders will select sales and listing agents from a drop down box.  However, only KHC-Certified Real Estate Agents will be listed.  If there is no real estate agent involved in the transaction, or the agent is not KHC certified, the boxes will remain blank.

By collecting this information, KHC can better recognize those real estate agents who go above and beyond for KHC!  Is your real estate agent KHC certified?  If not, please encourage them to visit KHC'sWeb site, under Lenders/Realtors, Real Estate Professionals, KHC-Certified Real Estate Agents

Home Buyer Tax Credit Congratulation Certificate
KHC developed a certificate for lenders to give borrowers who obtain a KHC Home Buyer Tax Credit.  Lenders may print this certificate from KHC's Web site, under Lenders/Realtors, Lender Services, Home Buyer Tax Credit/Mortgage Credit Certificates (MCCs), MCC-Approved Lenders, Tax Credit Closing Congratulation Certificate.

Thank you to Theresa Burdette, Peoples Exchange Bank, for the suggestion! 

Homeownership Department Fun!
If you missed the KHC Lender Updates session at the 2012 Kentucky Affordable Housing Conference, you missed some laughs!  The Homeownership Department and Unemployment Bridge Program staff did their own version of, "Call me Maybe."  It's now, "Sell it Baby!"  The video is available on KHC's YouTube channel




Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*






2012 GROSS ANNUAL HOUSEHOLD INCOME LIMITS FOR HOME DAP Effective February 21, 2012
Purchase Price Limit for HOME DAP – $195,700
Person(s) (1) (2) (3) (4 or more)
Adair, Bath, Bell, Breathitt, Carter, Casey, Clay, Clinton, Cumberland, Elliott, Estill, Floyd, Fulton, Harlan, Hart, Jackson, Johnson, Knott, Knox, Lawrence, Lee, Leslie, Letcher, Lewis, Magoffin, Martin, McCreary, Menifee, Metcalfe, Monroe, Morgan, Owsley, Perry, Pike, Powell, Pulaski, Rockcastle, Russell, Wayne, Whitley, and Wolfe
24,450
27,950
31,450
34,900
Bullitt, Henderson, Henry, Jefferson, Oldham, Spencer, Trimble and Webster
35,750
40,850
45,950
51,050
Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford
37,600
43,000
48,350
53,700
Boone, Bracken, Campbell, Gallatin, Kenton, and Pendleton
39,950
45,650
51,350
57,050
Other Counties Person(s) (1) (2) (3) (4 or more)
Person(s) (1) (2) (3) (4 or more)
Allen
26,150
29,850
33,600
37,300
Larue
32,000
36,600
41,150
45,700
Anderson
35,950
41,100
46,250
51,350
Laurel
25,850
29,550
33,250
36,900
Ballard
28,200
32,200
36,250
40,250
Lincoln
24,600
28,100
31,600
35,100
Barren
27,950
31,950
35,950
39,900
Livingston
27,900
31,900
35,900
39,850
Boyd
28,200
32,200
36,250
40,250
Logan
28,700
32,800
36,900
40,950
Boyle
29,350
33,550
37,750
41,900
Lyon
27,400
31,300
35,200
39,100
Breckinridge
27,100
31,000
34,850
38,700
Madison
31,150
35,600
40,050
44,500
Butler
24,850
28,400
31,950
35,500
Marion
28,500
32,550
36,600
40,650
Caldwell
28,150
32,150
36,150
40,150
Marshall
29,350
33,550
37,750
41,900
Calloway
31,150
35,600
40,050
44,500
Mason
26,700
30,500
34,300
38,100
Carlisle
24,750
28,250
31,800
35,300
McCracken
32,100
36,700
41,300
45,850
Carroll
28,850
33,000
37,100
41,200
McLean
32,100
36,700
41,300
45,850
Christian
30,350
34,700
39,050
43,350
Meade
28,600
32,650
36,750
40,800
Crittenden
27,400
31,300
35,200
39,100
Mercer
31,400
35,850
40,350
44,800
Daviess
32,100
36,700
41,300
45,850
Montgomery
29,050
33,200
37,350
41,500
Edmonson
32,150
36,750
41,350
45,900
Muhlenberg
25,150
28,750
32,350
35,900
Fleming
26,050
29,800
33,500
37,200
Nelson
32,150
36,750
41,350
45,900
Franklin
37,450
42,800
48,150
53,450
Nicholas
24,850
28,400
31,950
35,500
Garrard
27,650
31,600
35,550
39,450
Ohio
25,450
29,050
32,700
36,300
Grant
30,050
34,350
38,650
42,900
Owen
31,050
35,450
39,900
44,300
Graves
26,550
30,350
34,150
37,900
Robertson
28,350
32,400
36,450
40,500
Grayson
25,100
28,700
32,300
35,850
Rowan
25,200
28,800
32,400
36,000
Green
26,250
30,000
33,750
37,450
Shelby
39,850
45,550
51,250
56,900
Greenup
28,200
32,200
36,250
40,250
Simpson
28,950
33,050
37,200
41,300
Hancock
32,100
36,700
41,300
45,850
Taylor
25,900
29,600





KHC Loan Programs

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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





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









Economic Stimulus Plan Information

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Kentucky Housing Corporation (KHC) is looking into details about what the Economic Stimulus Plan means to Kentucky's housing programs.  Please have patience while we study all the implications to give our customers the best information available.  To read more about the Economic Stimulus Plan, please visitwww.FinancialStability.gov.

Frequently Asked Questions 

  1. I read in the paper I can receive $7,500 or $8,000 back for buying a house. I bought a house in the last year, so how do I get my money?
  2. I understand that I can have my interest rate reduced just by asking for it. How do I go about doing that?
  3. What if I just stop making my payments – can I qualify for a lower rate?
  4. I thought I could get $1,000 a year for making my payments on time under this new program. How does that work?
  5. Will the Home Affordable Modification help me if I can easily afford my current payment but my property value is now less than the amount I owe?
1.  I read in the paper I can receive $7,500 or $8,000 back for buying a house.  I bought a house in the last year, so how do I get my money?
There was a provision in the Housing and Economic Recovery Act, passed in July of 2008, which allowed first-time borrowers to receive a repayable tax credit of 10 percent of the sales price of their home, up to $7,500.  However, that was not allowed on loans financed with a housing finance agency, like Kentucky Housing Corporation.  
That law changed in 2009 allowing borrowers with KHC loans to qualify and increased the amount up to a maximum of $8,000 for loans closed after December 31, 2008 (ends December 1, 2009). 
Borrowers obtain the credit by filling out income-tax forms.  The credit is not available at the loan closing.
2.  I understand that I can have my interest rate reduced just by asking for it.  How do I go about doing that?
There are two options for reducing your interest rate.  Each has very specific qualifying guidelines.  First, your loan must be a CONVENTIONAL loan with Kentucky Housing, and cannot be an FHA, VA, or RHS loan. 
If you do have a conventional loan with KHC and are current on your payments but think the value of your house has declined so much that you could not refinance, we may be able to help you.  Some of the qualifying criteria include:
  • You must occupy the house as your residence.
  • You must have sufficient income to make the new payment.
  • You cannot get additional money from the new loan proceeds.
If you have a conventional loan through KHC, please click here for a list of approved lenders to contact for more information.
If you are either behind on your payments or can demonstrate that you are likely to fall behind, due to a job loss, family death or illness, or some other hardship, you may qualify to have your interest rate “modified.”  Some of the qualifying criteria include:
  • You must have closed your loan before January 1, 2009.
  • You must sign a financial hardship statement.
  • You must still live in the property.
  • You must go to counseling and agree to a workout plan.
  • You must fully document all income.

3.  What if I just stop making my payments – can I qualify for a lower rate? 
Not making your payments is never a good idea.  Falling behind on your mortgage will result in damage to your credit rating, and could impair your ability to obtain credit in the future.  If you have suffered financial hardship and think your ability to make your mortgage payment on time may be jeopardized, and you qualify otherwise, let us look at refinancing your existing mortgage under the guidelines above. 
To be eligible for loan modification through KHC, you must have a KHC loan. 
If you do not have a KHC loan, please contact your servicer or contact the Homeownership Protection Center toll-free at (866) 830-7868 or visitwww.ProtectMyKYHome.org.
4.  I thought I could get $1,000 a year for making my payments on time under this new program.  How does that work?
If you have:  missed one or more payments, can demonstrate financial hardship, and qualify for a “modified” payment or a reduced interest rate on your existing loan, then make all of your payments on time each year, you may be eligible to receive the lesser of ½ of your reduced payment amount or $1,000 annually.  The payment is applied directly to the principal balance of your loan; it is not a cash payment to the borrower.
5.  Does Kentucky Housing Corporation provide funds or grants to make up the difference between the appraised value of my house and what I owe?
No.
6.  I do not have a Kentucky Housing Corporation loan but am behind on my payments (or may be falling behind, just lost a job, etc.).  Where can I get assistance?
Kentucky’s Homeownership Protection Center is designed to assist homeowners who may be facing delinquency or foreclosure.  Call the Homeownership Protection Center toll-free at (866) 830-7868, or visit www.ProtectMyKYHome.org for assistance.
7. What if I have a second lien and the total debt on the property exceeds 105 percent?
You may still be eligible for a refinance if the first lien does not exceed 105 percent of the value of the property and all junior lien holders agree to subordinate to the new first mortgage.
8.  May I refinance and take cash out to pay other debts?
No.  Only transaction costs may be included in the refinanced amount.
9.  If I am behind on my payments, can I apply for the refinance option?
No.  Borrowers who are currently delinquent on their mortgage will not qualify.  You should contact your servicer to see if a Home Affordable Modification is an option for you.
10.  Do I need to be delinquent in order to qualify for a Home Affordable Modification?
No.  Responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default, for example, because they have had or will soon have a significant increase in their mortgage payment and they cannot afford the new payment.  A servicer participating in the program must screen every current borrower to determine if they meet the minimum eligibility criteria and to determine if they are at risk of imminent default.
11.  Will the Home Affordable Modification help me if I can easily afford my current payment but my property value is now less than the amount I owe?
No.  Home Affordable Modifications are designed to prevent foreclosures by making mortgage payments affordable for working homeowners struggling to retain homeownership.  The plan is not intended to replace equity lost by home price depreciation.  However, by preventing avoidable foreclosures, the plan is expected to stabilize and eventually strengthen property values, which will benefit all homeowners.
12.  How does loan modification work?
To be eligible for loan modification through KHC, you must have a KHC loan.  If you have a KHC loan, please contact KHC toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, ext. 216, so you can speak to someone about this process.
If you do not have a KHC loan, please contact your servicer or contact the Homeownership Protection Center toll-free at (866) 830-7868 or visitwww.ProtectMyKYHome.org
The Making Home Affordable Web site also has information about refinancing and loan modification options.
13.  I heard that Kentucky Housing Corporation has money to do weatherization or energy efficient repairs to my house.  How do I apply for those funds?
Kentucky Housing is currently partnering with the Community Action Councils and other agencies in an initiative called the “Clean Energy Corps.”  The first pilot communities are Fayette County, Clark County, and Bourbon County.  If you live in one of those counties, you can contact the Bluegrass Community Action Council at (859) 233-4600 to complete an application.







Kentucky Housing or KHC Interest Rate: 2.50% without Down Payment Assistance 3.00% with Down Payment Assistance

KHC or Kentucky Housing Interest Rates




Attention Kentucky First Time Homebuyers!