KENTUCKY HOUSING QUALIFYING CRITERIA FOR DOWN PAYMENT ASSISTANCE



KHC $6000 Dap Loan



What is Kentucky Housing?


Kentucky Housing is a trusted state agency in Frankfort, KY that works with local lenders to ensure all Kentucky home buyers have access to safe and affordable housing with access to down payment assistance help and counseling if needed to buy a home.


Do I need to be a first-time home buyer to do a KHC loan?


No, you do not have to be a first time home buyer with KHC loans.


How much down payment assistance can I get to buy a home in Kentucky?

Regular DAP

  • Purchase price up to $314,827 with Secondary Market.
  • Assistance in the form of a loan up to $6,000 in $100 increments.
  • Repayable over a ten-year term at 5.50 percent.
  • Available to all KHC first-mortgage loan recipients.

Affordable DAP

  • Purchase price up to $314,827 with Secondary Market.
  • Assistance up to $6,000.
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable DAP income limits.


Can I use the $6,000 for repairs to the home or buy stuff for the home?

No you cannot! The $6,000 down payment assistance can be used for down payment, closing costs and prepaids.

How long can I lock a KHC Loan?

You can lock a KHC Loan for 45 days

How long does it take to clsoe a KHC loan?

It takes about 30 to 45 days typically to close a KHC loan.

Can I just get a down payment assistance loan from Kentucky Housing?


In order to use the down payment assistance programs from KHC, you must do the first mortgage loan with them too. Additional eligibility requirements may apply, including income limits.


What if I have bad credit and I get a KHC loan?


Kentucky Housing loans require a minimum 620 credit score. The usually follow agency guidelines for credit, bankruptcy, foreclosure, collections, etc depending on it is FHA, VA, USDA, Fannie Mae.


Can I build a home with a KHC loan?


Kentucky Housing does not provide temporary construction loans, but we can provide the permanent financing for a new construction property with one of your loan programs including FHA, VA, USDA, or Fannie Mae.

How much can the house cost for a KHC Loan?

Our current purchase price limits are $314,827 in the state of Kentucky Consult your lender to determine the amount you are approved to borrow in regards to agency debt to income ratios requirements. KHC typically will not go above 40% for the front-end housing ratio, or over 50% for the total debt to income ratio. They will make exceptions sometimes.


What is the required down payment for a KHC Loan?


Required down payments range from 0-3.5% depending on the underlying loan product (Conventional, FHA, RD, VA).


Is a co-signer allowed on a KHC Loan?


KHC does not allow for co-signers to qualify for a mortgage loan


Can I finance improvements or repairs?


KHC does not offer rehab loans or 203k loans, or Renovation loans.


Are there income limits based on gross or net income for a KHC?


Gross household income limits for total household income.


Can I finance a manufactured or mobile home with KHC?

Manufactured and mobile homes are eligible under some mortgage products for KHC Loans. Homes must be double-wide, permanently attached to a foundation, and taxed as real estate (not personal property). Consult your lender for more information.


Read more below at the links for KHC Detailed Mortgage Information in regards to fully qualifying for a KHC loan.




KHC (15)

KHC Down payment Assistance Program Kentucky Housing (20)

khc dap (6)

KHC for downpayment assistance (3)

KHC Loan Programs (8)








Joel Lobb (NMLS#57916)
Senior Loan Officer


American Mortgage Solutions, Inc.

10602 Timberwood Circle Suite

Louisville, KY 40223

Company ID #1364 | MB73346


Text/call 502-905-3708

kentuckyloan@gmail.com



If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.


Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/


-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.