Down Payment Assistance Programs in Kentucky
From first-time buyers to current homeowners, many state, county and local housing agencies offer affordable loan programs with Down Payment Assistance (DPA), subject to availability of funds and credit qualifying. Down payment assistance can vary with single products or sometimes can be a combination of products such as Mortgage Credit Certificates (MCC), Grants, DPA’s along with closing cost assistance and low interest rates and fees that can help individuals and families become successful homeowners.
All borrowers must qualify for an underlying mortgage product according to the Housing Finance Agency authority (FHA, VA, USDA or Conventional). Housing loan programs are then layered on top to provide additional benefits. If eligible, the borrower can also add a down payment and closing cost assistance to their loan according to individual program guidelines.
What state are you in? I assume Kentucky? I will help you gather more information if this is something you want to look into. The general terms are below:
• Meet minimum credit score requirements
• Meet income limits
• Meet purchase price limits
• Meet loan amount limits
• Require specific homeowner counseling
KENTUCKY HOUSING QUALIFYING CRITERIA FOR DOWN PAYMENT ASSISTANCE
$10,000 available thru KHC for down payment assistance KY
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?
Can I use the $10,000 for repairs to the home or buy stuff for the home?
No you cannot! The 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 close 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 $346,644 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.
Kentucky Down payment assistance loans are available up to $10,0000 for Mortgage
Kentucky Down Payment Assistance
KHC recognizes that down payments, closing costs, and prepaids are stumbling blocks for many potential home buyers. We offer a special loan program to help with those. Your KHC-approved lender can help you apply.
Regular DAP
Purchase price up to $349,525 with Secondary Market.
Assistance in the form of a loan up to $10,000 in $100 increments.
Repayable over a 10-year term at 3.75 percent.
Available to all KHC first-mortgage loan recipients.
More About Down Payment and Closing Costs
No liquid asset review and no limit on borrower reserves.
Specific credit underwriting standards may apply to down payment programs.
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SECONDARY MARKET FUNDING SOURCE
Borrower must meet KHC’s Secondary Market Income Limits
Conventional Preferred Program
Minimum credit score of 660
3 percent down payment
Monthly mortgage insurance (charter coverage)
All KHC DAPs applicable
No minimum borrower contribution
No reserves required
80 percent AMI income
Conventional Preferred Plus 80
Minimum credit score of 660
3 percent down payment
Monthly mortgage insurance (standard coverage)
All KHC DAPs applicable
No minimum borrower contribution
No reserves required
Secondary Market Income limits apply
FHA
Insured by the Federal Housing Administration
3.5 percent down payment
All KHC DAPs applicable
Upfront and monthly mortgage insurance
Minimum credit score of 620
Refinance Options (Available only through Secondary Market)
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 620
VA
Guaranteed by the Veterans Administration for qualified military veterans
No down payment if the property appraises for the sales price or greater
All KHC DAPs applicable
Minimum credit score of 620
No monthly mortgage insurance payments
Refinance Options (Available only through Secondary Market)
VA IRRRL
620 minimum credit score
No appraisal required
30-year term
VA existing loan
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 sales price or greater
All KHC DAPs applicable
Upfront and monthly mortgage insurance
Minimum credit score of 620
Refinance Options (Available only through Secondary Market)
RHS Streamlined-Assist Refinance Program
620 minimum credit score
No appraisal required
Must have made timely mortgage payments for the last 12 months
30-year term
RHS existing 502 guaranteed loan
Home Buyer Tax Credit
KENTUCKY HOUSING CORPORATION
2021 SECONDARY MARKET
GROSS ANNUAL APPLICANT’S INCOME LIMITATIONS
Effective May 1, 2021
Secondary Market Purchase Price Limit — $346,644
I hope this gives you some useful input to help guide your decision making. Give me a call if you have more specific questions! Thanks so much
Sincerely,
Joel Lobb
Mortgage Loan Officer
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364
fax: 502-327-9119
email: kentuckyloan@gmail.com
email: kentuckyloan@gmail.com