Down Payment Assistance Kentucky 2019

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 $6,000.
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable DAP household income limits

Federal Housing Administration (FHA)

•Minimum 620 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


• 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 620 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 620 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

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:

 660 credit score for Conventional
 620 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

Joel Lobb (NMLS#57916)
Senior  Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 MB73346

Text/call 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#57916

-- 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.