Kentucky Housing Corporation (KHC) has reintroduced its $2,000 Closing Cost Grant,

 The Kentucky Housing Corporation (KHC) has reintroduced its $2,000 Closing Cost Grant, effective March 18, 2025. This grant is designed to assist homebuyers in Kentucky by covering some of the upfront costs associated with purchasing a home. Here's how it can help:

Key Features of the KHC $2,000 Closing Cost Grant

• No Repayment Required: The grant does not need to be repaid, making it a valuable resource for those who need financial assistance with closing costs.

• Combination with Other Programs: It can be combined with KHC's $10,000 Down Payment Assistance Program (DAP), allowing homebuyers to access a total of $12,000 in assistance. This combination can significantly reduce the amount of money needed upfront for a home purchase.

• Eligibility: While specific eligibility criteria are not detailed in the provided information, typically these programs require applicants to meet certain income limits, purchase price limits, and other qualifications.

How It Helps Homebuyers

• Reduces Upfront Costs: By covering closing costs, homebuyers can allocate more funds towards other expenses or save money for future needs.

• Increases Affordability: Combining the grant with the DAP can make homeownership more accessible by reducing the financial burden of down payments and closing costs.

• Simplifies the Homebuying Process: Having additional financial support can make the process less stressful and more manageable for first-time or low-income homebuyers.

Overall, the KHC $2,000 Closing Cost Grant is a beneficial resource for those looking to purchase a home in Kentucky, especially when used in conjunction with other assistance programs.

1. $2,000 Closing Cost Grant – No repayment required
2. Can be used for down payment, closing costs, and prepaid expenses 
3. Can be combined with KHC’s $10,000 Down Payment Assistance Program (DAP) Limited availability – Only $1 million available for the first 500 homebuyers Starts March 18, 2025 – Act fast before funds run out!

How to Apply for the KHC Closing Cost Grant

Applying for the grant is simple! Here’s how:

Get Pre-Approved – Work with a KHC-approved mortgage lender (like myself!) to determine your eligibility.
Find a Home – Once pre-approved, start house hunting with confidence.
Apply for Assistance – Your lender will help you apply for both the $2,000 Closing Cost Grant and $10,000 Down Payment Assistance Program if you qualify.
Close on Your Home – Use the funds to lower your upfront costs and move in with less money out of pocket!

•  First-come, first-served – Limited to the first 500 homebuyers
•  Available for purchase loans only (not refinances)
•  Can be combined with the KHC Down Payment Assistance Program (DAP) and Federal Home Loan Bank (FHLB) funds
•  Listed as a gift in GUS (Guaranteed Underwriting System), DU (Desktop Underwriter), and LPA (Loan Product Advisor)
• Grant confirmation available at reservation

https://notebooklm.google.com/notebook/0a9189d5-f3d5-4c22-a36b-889349289af1/audio

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

---

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Kentucky Local Home Loan Lender Services

 First-Time Home Buyers Welcome
 FHA, Rural Housing (USDA), VA, and Kentucky Housing Corporation (KHC) Loans
 Conventional Loan Options Available
 Fast Local Decision-Making
 Experienced Guidance Through the Home Buying Process

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

https://fb.watch/cXx3-IDnSR/

Kentucky First Time Home Buyer Programs For Home Mortgage Loans

Kentucky first-time homebuyer programs

• KHC Regular Down Payment Assistance: Receive a loan of up to $6,000 and repay it over 10 years at a 5.5% interest rate.
• KHC Affordable Down Payment Assistance: If you have a low-to-moderate income, you can get a loan of up to $6,000 and pay it back over 10 years at a 1% rate.
• Conventional Mortgage Loan- 3% down payment credit scores should be at least 680, but preferably 720 or higher with 
• Federal Housing Administration FHA Kentucky mortgage: You can get a down payment of 3.5% with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down using this loan, which is also called an FHA loan. 
• United States Department of Agriculture mortgage Kentucky USDA Mortgage loan: These loans, also called USDA loans, can be useful if you are a low-to-moderate income borrower looking to buy a home in a rural or suburban area.
• Veterans Affairs mortgage Kentucky VA Mortgage : These mortgages, also called VA loans, are for active-service military members or veterans, or spouses of members who have died and can provide lower interest rates than conventional mortgages.

• Am I an active or former member of the armed forces? If not, right away you can remove VA loans from consideration.
• Is my home located in a rural area? People living in more urban and suburban neighborhoods won’t qualify for a USDA loan, so you can scratch that one if that’s the case.
• How much can I afford for a down payment? FHA loans offer plenty of flexibility with their down payment options, but you will need to put up some money up front. That may not be the case with either VA or USDA loans.
• How strong is my credit score? You’ll need a 620 credit score at minimum to qualify for USDA loans. FHA and VA programs tend to be a bit more lenient on credit history.
• Which loan offers the lowest interest rate? All three government loan programs tend to offer lower interest rates than conventional mortgages, but among them, VA might have a slight edge. Mortgage rates constantly fluctuate, no matter what type of home loan you’re considering. So, be sure to take a look at the latest interest rates before making a decision.

Loan types of credit score requirements for First Time Home Buyers in Kentucky

Loans insured by the government, such as VA loans, USDA loans and FHA loans, tend to have more flexible qualification requirements than conventional mortgage loans, which are not government-backed.

To get approved for a mortgage, whether conventional or government-backed, you’ll have to meet your lender’s minimum FICO score for that particular loan type. 

Type of Loan Minimum FICO Score

Conventional 620

KHC Down Payment Assistance 620

FHA 500 with 10% down 580 3.5% down payment

VA no minimum score (depends on the lender)

USDA no minimum score (depends on the lender

Most lenders will require a DTI ratio of less than 45-50 %, but this will depend on the type of loan you’re applying for. 

To determine your DTI, lenders take into account your front-end and back-end DTI.

Front-end DTI

Your front-end ratio consists of your monthly housing expenses divided by your monthly gross income. Housing-related expenses include your future mortgage payment, taxes and mortgage insurance.

Back-end DTI

The back-end DTI is the percentage of your gross income spent on monthly debts.

The items detailed in your credit report often comprise your back-end DTI. This includes monthly obligations such as credit cards, car loans, student loans, child support and personal loans.

Private mortgage insurance (PMI)

When purchasing a property with a conventional loan, some buyers have to factor in private mortgage insurance (PMI).

PMI is generally required for homebuyers who offer less than 20% down and is designed to protect the lender if you default on your loan.

The cost of PMI is rolled into your mortgage payment as an added fee and often accounts for 0.2% to 2% of the mortgage amount. According to Freddie Mac, you can expect to pay between $30 to $70 per month for every $100,000 borrowed.

Once you build your equity to 20% of the property’s appraised value, your loan servicer is required to drop PMI. According to Freddie Mac, PMI will automatically terminate on the date your principal balance reaches 78% of the original appraised value of your home.

Mortgage insurance premiums (MIP)

Government-backed loans don’t have PMI. Instead, you’ll have to factor in mortgage insurance premiums, which are paid both at closing and as part of your monthly payment.

Both FHA and USDA loans require mortgage insurance.

FHA loans require an upfront premium of 1.75% of the loan amount. FHA borrowers also pay an annual premium of 0.45% to 1.05% of the loan amount — unless they put 10% down. Some FHA borrowers can remove MIP, but that will depend on their loan’s origination date.

On the other hand, USDA loans require an upfront mortgage premium of 1% and an annual premium of 0.35%. The drawback of USDA loans is that there’s no way to eliminate your mortgage insurance premium.

If you have a VA loan, the VA guarantee replaces mortgage insurance. However, you’ll still have to pay an upfront funding fee of 1.4% to 3.6% of the loan amount at closing.

If you don’t have the money upfront, VA, FHA and USDA loans allow you to roll the fee into your mortgage, but your loan amount and overall loan cost will increase

Conventional Loans 3%-20%

620

45%

PMI required for down payments of less than 20%. Depends on loan type, credit score and down payment.

KHC Down payment Assistance

      zero down $6k dap assistance in form of second mortgage

620 and above score 

50% maximum debt to income ratio

VA Loans

Not required for down payment

Varies by lender, no minimum credit score

no max debt ratio but residual income is important.

No mortgage insurance but a one-time funding fee (1.25%-3.3% of the loan amount).

FHA Loans

3.5% to 580 credit score and 10% down with a 500 credit score.

56.9% max debt to income ratio but lower required on manual underwrites.

Mortgage insurance required. MIP can be removed after 11 years if you put down 10%.

USDA Loans

No required down payment

no minimum score varies by lender

45%

No mortgage insurance, but a one-time guarantee fee (1% of loan amount) and an annual fee (0.35% of loan amount).

Using Gift Money for a Down Payment in Kentucky For A Mortgage Loan

Can a family member help you come up with the down payment for a mortgage? If so, are there any limits on how much they can provide or other restrictions?


The answer is yes, in both cases. In today’s economy, many potential home buyers, young people in particular, are looking to their parents or other relatives for help in coming up with money for a down payment.

Advantages of a larger down payment

A larger down payment can make it easier to get a mortgage, make it possible to get a larger mortgage than you would otherwise have qualified for, or reduce the interest rate on your home loan, so there are a lot of benefits to using gift money for a down payment. There are certain limitations, however, so you want to be aware of them before you get started.

Do all lenders allow gift money for a down payment?

In most cases, it’s ok with lenders to use gift money from a family member to make a down payment. The FHA allows down payments of as little as 3.5 percent, and all of it can come from a gift, while Fannie Mae, VA and USDA Rural Development allow down payments fully funded by gift money as well.



If you’re getting a mortgage backed by Freddie Mac, however, you need to put up at least 5 percent of the purchase price out of your own money if the down payment is less than 20 percent. However, you can use gift money to increase your down payment, perhaps doubling it to 10 percent for example, and you can use gift money for the whole thing if you’re putting up 20 percent or more.



One problem is that, when getting a conforming loan, you rarely know up front if your lender plans to sell your loan to Freddie Mac or its sibling, Fannie Mae. So if you’re planning to use all gift money for your down payment, try to find a lender who deals primary with Fannie Mae, unless you’re applying for an FHA, VA or USDA loan.

Can you borrow down payment money from relatives?

Documenting Your Assets for A Louisville Kentucky Mortgage loan down-payment-


In a word – no. In fact, when putting up gift money for a down payment, you need to provide a statement from the giver that the money does not need to be repaid. The reason for this is that your down payment is supposed to be your own money, free and clear, with no strings attached. If it has to be repaid, even to a relative, that increases your debt burden and affects how much a mortgage lender is willing to lend you.

How much can they give you?

As much as they want or are able to. However, in practical terms, most gifts are limited to $13,000 – that’s how much the IRS allows one person to give another each year without incurring the gift tax. That amount doubles to $26,000 if the gift is given to you and your spouse, and can even increase to $52,000 a year if your parents file their taxes separately and each give gifts to you and your spouse.



The gift tax isn’t something you pay as a recipient – the gift is tax-free to you. From the IRS’ perspective, gifts are a form of early inheritance, so any amount above the $13,000 annual individual limit (up to $5 million lifetime) is taxed on the giver, same as an estate tax would be. That’s also why the gift isn’t tax deductable for the giver, since it’s considered an early payout from their estate.



If you’re fortunate enough to have family members who are able and willing to help you financially, gift money for a down payment can be a big help in buying a home. However, just make sure you know the rules going in so you don’t run into problems during the process.















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

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/

NMLS Consumer Access for Joel Lobb 

Accessibility for Website 

Privacy Policy

KHC Home Buyer Tax Credit Down payment Assistance

KHC Home Buyer Tax Credit:

• Reduces the amount of federal income tax
you pay.
• Gives you more income to qualify for a
mortgage loan.
• Is effective for the life of the loan. As long as you
have a mortgage, you can claim the credit!
• A 25 percent tax credit of the mortgage interest
paid over a year (not to exceed $2,000).
• The remaining 75 percent of mortgage interest
can still be taken as a yearly deduction.
• Offers a reduction of the one-time fee* to $200
if you obtain your mortgage financing through
Kentucky Housing Corporation (KHC).



Down payment Assistance

Programs (DAP):
• Regular DAP:
Up to $6,000 second mortgage; paid back over
a 10-year period at 5.50 percent interest.
• Affordable DAP:
Up to $4,500 second mortgage; paid back
over a 10-year period at 1 percent interest.
Affordable DAP household income limits apply.
*DAPs can pay the home buyer tax credit fee.





Fill out my form!

Kentucky Housing Corporations KHC First Time Home Buyers Down Payment Assistance Zero Down Options for 2014

KHC First Time Home Buyers Down Payment Assistance Zero Down

Kentucky Housing Corporation (KHC) still has $4 million in Mortgage Revenue Bond (MRB) Special Funding available!  This funding is limited and available on a first-come, first-served basis.  

Effective with reservations on or after Monday, January 6, 2014, all households below $35,000 gross annual household income will qualify for the MRB Special Funding interest rates. The rate with DAP will be lowered and the requirement to demonstrate a need by having at least a 25% front ratio has been eliminated. 

Program guidelines:

• First-time home buyers, unless property is located in a targeted county.
• Interest rate is fixed at 2.5 percent without Down payment Assistance Program (DAP) or 2.75 percent with DAP.
• Maximum ratios 40/45%.
• Executed purchase contract.
• Existing or new construction property (purchase price limit $115,000).
• Regular and Affordable DAP available.
• FHA, VA, and RHS first-mortgage programs.
• 640 credit score and AUS approval.
• Gross annual household income limit of $35,000 for all household sizes.
• Follow the 45-day lock with current reservation extension policy.

• The lower interest rate is not guaranteed until the lender receives the updated reservation confirmation.

 Appy below for free for this program or call me below with your questions. 

joel lobb Louisville Mortgage Group License:  NMLS# 57916 I specialize in Kentucky FHA, VA, USDA, KHC, Jumbo and Fannie Mae mortgage loans in Ky. I have helped over 589 Kentucky families buy their first home and refinance their current mortgage for a lower rate; For the first time buyer with little money ...view more Email Me | Visit My Website (502) 905-3708

View My Profile

Fill out my form!

Kentucky Housing or KHC Interest Rate:

Interest Rates

Reservation System Open Monday - Friday from 10 a.m. to 9 p.m.

Rates subject to change without notice   

Secondary Market Interest Rates -- 45 Day Lock

 

Loan Type	Rate without Down Payment Assistance	Rate with Down Payment Assistance
FHA, VA & RHS	4.0%	4.25%
​Conventional Preferred	4.25%	4.50%
​Conventional Preferred Risk	4.750%	4.875%
​HFA Preferred Plus 80	4.375%	4.625%

Secondary Market Refinance Rates -- 45 Day Lock

Loan Type	Rate
FHA Refinance	4.0%
RHS Streamlined-Assist Refinance Program	4.0%

Kentucky First Time Home Buyer Down Payment Assistance thru Kentucky Housing up to $15,000 Dap Available.

Interest Rates

*** $15,000 Neighborhood DAP available from loan fallout ***

**** MRB Special Funding **** Limited Availability -- Monies Still Available  Interest Rate:  2.50% without Down Payment Assistance                        3.00% with Down Payment Assistance  $35,000 Household Income Limit First time home buyer, unless property located in targeted county Existing or new construction property -- purchase price limit $115,000  Regular and Affordable DAP available FHA, VA or RHS first mortgage programs through MRB Funding 640 credit score Borrower must demonstrate a need for the special funding.  The borrower's housing ratio must be at a minimum of 25% Maximum ratios of 40/45% with AUS approval

Secondary Market Interest Rates -- 45-Day Lock  

Loan Type	Rate without Down Payment Assistance	Rate with Down Payment Assistance
FHA, VA & RHS  640 credit score AUS approval Purchases & Refinances	4.000%	4.500%
Conventional  680 credit score No MI required LTV 80.01% -97.00% *DU AUS approval  Purchases	5.125%	5.375%

Mortgage Revenue Bond Interest Rates -- 45-Day Lock

Loan Type	Rate without Down Payment Assistance	Rate with Down Payment Assistance
FHA, VA & RHS  640 credit score AUS approval Purchases	4.000%	4.500%
Conventional  680 credit score No MI required LTV 80.01% -97.00% *DU AUS approval  Purchases	5.125%	5.375%

 * Run through DU for Approve/Eligible BEFORE reserving with KHC.  Select HFA Preferred Risk Sharing program located on Additional Data Screen.  

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/