KHC Loan Programs Down Payment Assistance for 2017


Get $10,000 Down Payment Grant for Kentucky Home Buyers in 2017 HHF DAP KHC for your home purchase if you live in  Christian, Hardin, Jefferson or Kenton counties. 
Three different types of forgivable down payment assistance programs are now available until all reservations are filled. Limited time!
These programs provide first time homebuyers with $10,000 for down payment and closing costs assistance for the purchase of a new or existing property.
FUNDS ARE FIRST COME FIRST SERVE!
Give us a call today or email for more information.


$10,000 HHF DAP
Kentucky Housing Corporation (KHC) is proud to announce a new Hardest Hit Fund Down Payment Assistance Program (HHF DAP)! A total of $4 million will be available for new reservations beginning today, Wednesday, January 11, 2017, at 10 a.m., ET. The HHF DAP will be available on a first-come, first-served basis, based on the completion of the first mortgage and HHF DAP reservations.
HHF DAP Program Guidelines:
  • $10,000, 0 percent interest, forgivable second mortgage loan with a 5 year term.
  • Not required to be at maximum LTV first mortgage amount.
    • No less than 81 percent LTV with conventional loans.
  • Property must be located in one of the four counties:
    • Christian
    • Hardin
    • Jefferson
    • Kenton
  • New construction properties are not allowed.
    • Property has to have been previously occupied.
  • Secondary Market Purchase Price and Income Limits apply.
  • Borrower must be a first-time home buyer (no ownership interest in the last three years).
    • Most recent three year federal tax returns or tax transcripts required.
  • Pre-purchase home buyer education required for all borrowers.






For Kentucky Home Buyers not eligible for the $10,000 Down Payment Grant from KY Housing, they have the following Down payment assistance programs below usually year around and available in every county of Kentucky.

They are as follows:

Regular DAP

  • Purchase price up to $294,000 with Secondary Market or $258,690 with MRB.
  • 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

  • Purchase price up to $294,000 with Secondary Market or $258,690 with MRB.
  • Assistance up to $4,500.
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable DAP household income limits

  • .









KHC Loan Programs





















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


Only Homebuyers obtaining a KHC first mortgage are eligible for DAP. All DAPS take a lien
position & require input into LP/DU as subordinate financing. DAP funds can never be used to
pay for repairs. Once you have determined the loan type it’s time to see which of the two KHC
Down payment assistance programs your borrower is eligible for. Follow the easy steps
below….

1. Check to see the household income falls under the Affordable DAP Income Limits:
If yes then the borrower qualifies for the Affordable DAP up to $4,500. Affordable DAP
is amortized over 10 years at 1%. Must go to maximum LTV allowed on first mortgage
amount. Borrower must qualify with second mortgage payment. If no, then proceed to
Regular DAP.

2. Check to see if the applicant(s) income falls under the Secondary Market Income Limits.
If yes the borrower is eligible for Regular DAP up to $6,000 in $100.00 increments with
a minimum $500.00 loan amount. Regular DAP is amortized over 10 years at 5.50%.
Must go to maximum LTV allowed on first mortgage amount. Borrower must qualify with
second mortgage payment.



To successfully originate KHC mortgages you should begin with prequalified
applicants and properties meeting FHA, VA, RHS, or Fannie Mae Conventional
guidelines. The applicant (s) must be purchasing or refinancing a single family, one
unit, and owner-occupied property, located in Kentucky. Then follow the steps below….

1. The purchase price or refinance amount is at or below:

 $294,000 with Secondary Market
 $258,960 with MRB or KHC’s Homebuyer Tax Credit

2. The applicant (s) meet KHC’s simple credit overlays:

 680 credit score for Conventional
 640 credit score for FHA, VA, and RHS
 Max ratio caps of 40%/45%
 AUS Approval required except on RHS


 45-day Lock

4. Does borrower require down payment and closing costs assistance with their
Conventional, FHA, VA, or RHS first mortgage? If yes, then proceed to the DAP
REFERENCE CARD.








Joel Lobb
Senior  Loan Officer
(NMLS#57916)


text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.