Down Payment Assistance Kentucky 2021 Kentucky Housing Corporation


KHC is used for mostly applicants in urban areas of Kentucky that don’t have access to USDA or other government agencies to buy a home with no down payment.

A minimum of 3.5% down payment is required with this loan. Down payment assistance loans are available from $4500-$6,000, and are paid back over a period of ten years. They are typically offered to buyers with limited cash reserves and carry an interest rate of 1 to 5.5%.

These loans can make a critical difference to buyers for whom the down payment is an obstacle. Buyers whose 3.5% down payment is less than the $6000 limit may choose to use the remainder of a down payment loan to pay closing costs, further reducing the amount needed to bring to closing.

  • Conventional Preferred Program
  • The Kentucky Housing Corporation offers a few different loan programs, including the Conventional Preferred program. These home loans have 30-year fixed interest rates, so your rate won’t change over the life of the loan. The mortgages are serviced by the KHC and maintained in Kentucky, not sold off the way other mortgages are.To qualify for this program, you’ll need:A minimum credit score of 660.A down payment of 3% of your purchase price.To pay monthly mortgage insurance.An income that doesn’t exceed 80% of the local median income.With the Conventional Preferred Program, you also can make use of any of the state’s down payment assistance programs for help with your closing costs.
  • Conventional Preferred Plus 80 Program
  • Many of the requirements for the Preferred Plus 80 program are similar to those for the Conventional Preferred Program loans. You’ll need:A minimum credit score of 660.A down payment of 3% of your purchase price.Monthly mortgage insurance.An income that doesn’t exceed your county’s “secondary market” limit.And, the KHC’s down payment assistance programs can be used in conjunction with the Conventional Preferred Plus 80 program.

KHC recognizes that down payments, closing costs, and prep​aids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your need.

Regular DAP

  • Purchase price up to $327,334 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 $327,334 with Secondary Market.
  • Assistance up to $6,000.
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable D​AP income limits.

​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.​

Joel Lobb

Joel Lobb, American Mortgage Solutions (Statewide)

Joel has worked with KHC for 12 of his 20 years in the mortgage lending business. Joel said, “A lot of my clients would not have been able to purchase a home of their own or possibly delayed their purchase due to lack of down payment but with the $6,000 DAP loan program, this gets them into a house sooner and starts their path to homeownership while building equity instead of throwing their money away.”

When you’re ready to purchase a home in Joel’s area, contact him at:
Phone: 502-905-3708
Email: Kentuckyloan@gmail.com
Website: www.mylouisvillekentuckymortgage.com

Kentucky Housing Corporation (KHC) has $5.5 million in Mortgage Revenue Bond (MRB) Special Funding, offering a 1.00 percent fixed rate for 30 years.
Joel has worked with KHC for 12 of his 20 years in the mortgage lending business. Joel said, “A lot of my clients would not have been able to purchase a home of their own or possibly delayed their purchase due to lack of down payment but with the $6,000 DAP loan program, this gets them into a house sooner and starts their path to homeownership while building equity instead of throwing their money away.”

One thought on “Down Payment Assistance Kentucky 2021 Kentucky Housing Corporation

  1. Reblogged this on Kentucky USDA Mortgage Lender for Rural Housing Loans and commented:

    KHC is used for mostly applicants in urban areas of Kentucky that don’t have access to USDA or other government agencies to buy a home with no down payment.

    A minimum of 3.5% down payment is required with this loan. Down payment assistance loans are available from $4500-$6,000, and are paid back over a period of ten years. They are typically offered to buyers with limited cash reserves and carry an interest rate of 1 to 5.5%.

    These loans can make a critical difference to buyers for whom the down payment is an obstacle. Buyers whose 3.5% down payment is less than the $6000 limit may choose to use the remainder of a down payment loan to pay closing costs, further reducing the amount needed to bring to closing.

    Conventional Preferred Program
    The Kentucky Housing Corporation offers a few different loan programs, including the Conventional Preferred program. These home loans have 30-year fixed interest rates, so your rate won’t change over the life of the loan. The mortgages are serviced by the KHC and maintained in Kentucky, not sold off the way other mortgages are.To qualify for this program, you’ll need:A minimum credit score of 660.A down payment of 3% of your purchase price.To pay monthly mortgage insurance.An income that doesn’t exceed 80% of the local median income.With the Conventional Preferred Program, you also can make use of any of the state’s down payment assistance programs for help with your closing costs.
    Conventional Preferred Plus 80 Program
    Many of the requirements for the Preferred Plus 80 program are similar to those for the Conventional Preferred Program loans. You’ll need:A minimum credit score of 660.A down payment of 3% of your purchase price.Monthly mortgage insurance.An income that doesn’t exceed your county’s “secondary market” limit.And, the KHC’s down payment assistance programs can be used in conjunction with the Conventional Preferred Plus 80 program.
    KHC recognizes that down payments, closing costs, and prep​aids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your need.

    Regular DAP
    Purchase price up to $327,334 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 $327,334 with Secondary Market.
    Assistance up to $6,000.
    Repayable over a ten-year term at 1.00 percent.
    Borrowers must meet Affordable D​AP income limits.
    ​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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