Showing posts with label down payment assistance and first time home buyer grants. Show all posts
Showing posts with label down payment assistance and first time home buyer grants. Show all posts

Kentucky Welcome Home Grant of $20,000 for Kentucky Home Buyers in 2024

 
 A Comprehensive Guide to the Kentucky Welcome Home Grant

For many Kentuckians, the dream of homeownership can feel out of reach due to financial constraints. But thanks to the Kentucky Welcome Home Grant of $20,000 for Kentucky Home Buyers in 2024 that dream might be closer than you think. This grant program, administered by the Federal Home Loan Bank of Cincinnati (FHLBC), offers down payment and closing cost assistance to eligible homebuyers throughout the state.

Whether you're a first-time homeowner or looking to upgrade your living space, understanding the qualifying guidelines is crucial for securing this valuable assistance. Buckle up, folks, as we delve into the details of the Welcome Home Grant and equip you with the knowledge to unlock your Kentucky homeownership dreams!

Eligibility: The First Step on Your Journey

Before diving into the specific details, let's address the first and most important question: are you eligible? Here's a breakdown of the key criteria:

Income: Your total household income must fall at or below 80% of the Mortgage Revenue Bond (MRB) limit for your specific county. These limits vary depending on location, so be sure to check the current limits here at this link below for your desired area.

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Property: The grant applies to primary residences only, including single-family homes, townhomes, condominiums, and qualified manufactured homes. The property must be located within eligible Kentucky counties. You can find a list of participating counties on the FHLBC website.

Purchase Contract: You must have a fully executed purchase contract for an eligible property before applying for the grant.

Financial Contribution: You must contribute at least $500 of your own funds towards the down payment and/or closing costs.

Additional Considerations: While not mandatory, completing a homebuyer education course can strengthen your application. Moreover, veterans and active-duty military personnel may be eligible for higher grant amounts.

Diving Deeper: Grant Details and Amounts

The Welcome Home Grant offers assistance in the form of a non-repayable grant. The maximum grant amount varies depending on several factors:

  • Your military status: Veterans and active-duty military personnel are eligible for up to $25,000, while all other eligible homebuyers can receive up to $20,000.
  • Your down payment: If you contribute more than the required $500 towards your down payment, the grant amount may be reduced to fit within the total program funding available.

Remember: The grant funds cannot be used towards the property purchase price itself. They are strictly for down payment and closing cost assistance.

Finding Your Path: The Application Process

Now that you understand the eligibility and grant details, let's navigate the application process:

  1. Connect with a participating lender: The Welcome Home Grant program operates through partnering lenders, so start by searching for a lender in your area that participates in the program. You can find a list of participating lenders on the FHLBC website or by contacting the organization directly.
  2. Pre-qualify for a mortgage: This shows both you and the lender a realistic picture of your borrowing capacity and strengthens your application.
  3. Gather your documents: Be prepared to provide proof of income, employment, assets, and other required documentation as outlined by your lender.
  4. Complete the grant application: Your chosen lender will walk you through the grant application process and help you submit the necessary paperwork.
  5. Await a decision: The processing time can vary, but you'll typically receive a decision within a few weeks.

Beyond the Guidelines: Valuable Resources and Tips

Remember, knowledge is power! Equip yourself with as much information as possible to ensure a smooth application process. Here are some valuable resources:

Pro-Tip: Start planning early! Research potential properties, understand the market in your desired area, and get your finances in order well before applying for the grant.

Remember: Homeownership is a significant investment, so proceed with careful planning and consideration. Utilize the available resources, ask questions, and don't hesitate to seek professional guidance if needed.


Important Dates to Remember:


  • Application Period: Reservations for the 2024 Welcome Home Grant program open on March 1st, 2024, at 8:00 AM ET.
  • Funding Availability: Grants are limited and awarded on a first-come, first-served basis.
  • Program Duration: The program runs until all funds are reserved.
  • Must have contract under agreement to submit for funds. 


Joel Lobb  Mortgage Loan Officer

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

Text/call: 502-905-3708
fax: 502-327-9119
email:
 joel@loansolutionsnow.com

http://www.mylouisvillekentuckymortgage.com/



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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 approvalnor 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.
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The reasons you will get turn down for a mortgage loan in Kentucky.

 There are several reasons why people in Kentucky might get turned down for a mortgage loan. These reasons can be broadly categorized into issues with the borrower or the property:

Borrower-related reasons:

  • Credit score: Low credit scores (generally below 620) are a major factor in loan denials. Having a history of late payments, delinquencies, or collections can negatively impact your score.
  • Debt-to-income ratio (DTI): This ratio compares your monthly debt payments to your gross income. A high DTI (generally above 50%) indicates you have a lot of debt compared to your income, making it harder to afford a mortgage payment.
  • Employment history: Lenders prefer borrowers with stable employment and income. Recent job changes, gaps in employment, or insufficient income documentation can raise concerns.
  • Down payment: A smaller down payment increases the loan amount and loan-to-value ratio (LTV), making the loan riskier for lenders. In Kentucky, FHA loans require a minimum 3.5% down payment, while conventional loans typically require 20%.
  • Insufficient assets: While not always a disqualifier, having limited savings or assets can weaken your application by reducing your financial cushion.

Property-related reasons:

  • Appraisal value: If the appraised value of the property is lower than the purchase price, it creates a high LTV, making the loan riskier for lenders.
  • Property condition: Major repairs or structural issues with the property could require significant investment before closing, which lenders may not be comfortable with.
  • Location: Properties in floodplains or other high-risk areas may be ineligible for certain loan types or require additional insurance.
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Here are some resources that can help:

Joel Lobb  Mortgage Loan Officer

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

Text/call: 502-905-3708
fax: 502-327-9119
email:
 kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

Kentucky First Time Home buyer Down Payment Assistance for $7,500



KHC is increasing the down payment assistance program amount from $6,000 to $7,500. This is for both Regular
Down Payment and for Affordable Down Payment assistance programs






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Zero Down Kentucky Mortgages

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Zero Down Kentucky Mortgages


 ZERO DOWN HOME LOANS IN KENTUCKY There are a few programs that feature zero down payment in Kentucky for Home buyers : USDA and VA...


Kentucky Housing just announced a $1,500 increase to their Down Payment Assistance program! That means you can now receive up to $7,500 in down payment and closing cost help








ATTENTION: KHC has announced changes to the Down Payment Assistance Programs! This is great news for buyers in Kentucky!

1. KHC is increasing the down payment assistance program amount from $6,000 to $7,500. This is for both Regular Down Payment and for Affordable Down Payment assistance programs
2. The interest rate on the repayment of the down payment assistance will go from 5.5% to 3.75%. (Affordable Down Payment assistance will remain at 1%)
Realtors: We are here to help you and your clients take advantage of these great opportunities.
Buyers: We are here to answer questions you have regarding this program and qualification requirements.

KHC is used for mostly applicants in Kentucky that don’t have access to money for a down payment on their home.


Regular DAP

  • Purchase price up to $346,644 with Secondary Market.
  • Assistance in the form of a loan up to $7,500 in $100 increments.
  • Repayable over a 10-year term at 3.75 percent.
  • Available to all KHC first-mortgage loan recipients.

Affordable DAP

  • Purchase price up to $346,644​ with Secondary Market.
  • Assistance up to $7,500.
  • Repayable over a 10-year term at 1.00 percent.
  • Borrowers must meet Affordable D​AP income limits.