Chenoa Fund Down Payment Assistance Program in Kentucky


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This Program is for any eligible potential home buyers in Kentucky .

You can find some general information about our program here:  https://chenoafund.org/homebuyer/providing-down-payment-assistance-on-fha-and-conventional-loans.

In short, Chenoa Fund covers the entire down payment and provides 3.5% and 5% assistance on FHA and 3% and 5% on Fannie Mae conventional loans. Some basic information and requirements for our products are included below:

With the DPA Edge Forgivable Soft Second product, you receive a 30-year term, 0% interest rate, no monthly payment second mortgage. You will need to meet the minimum credit score of 600 and have a qualifying income less than or equal to 115% of the median income for the county in which you will live. The loan is forgivable under conditions dependent on the down payment assistance amount:

  • 3.5%: Forgivable after 36 consecutive, on-time payments on the FHA first mortgage.
  • 5%: Forgivable after 120 consecutive, on-time payments on the FHA first mortgage.

The DPA Edge Repayable option has no income requirement and has either a 0% rate for a 10 yr term, or a 5% rate for a 30 yr term.

The Rate Advantage product, which is also paired with an FHA loan, also offers a 3.5% or 5% down payment assistance. With the 5%, 1.5% of that can be used for Closing Costs. It offers a 6% 10 yr. term, and requires a 640 minimum credit score, and the income requirement is less than or equal to 135% of the Area Median Income for the county where you will live.

For FHA loans, this assistance has a maximum debt-to-income (DTI) requirement of 45%, with more wiggle room for FICO scores of 640 and higher.

For Standard Conventional and Conventional HomeReady loans, the income requirement is according to Fannie Mae guidelines. This assistance covers the entire down payment and part of the closing costs. Assistance for conventional loans has a minimum FICO requirement of 620 and a maximum debt-to-income (DTI) requirement of 50%. Conventional loans carry a 10-year fixed rate with an interest rate 2% higher than the first mortgage rate.

Please let us know if you have any questions about these requirements. You can apply for our program through one of our approved lenders—in fact, you can access the entire program through your lender, from registration to closing, as long as your lender is approved.

Check out CBC Mortgage Agency’s down payment assistance program known as Chenoa Fund below.

FHA

DPA Edge: Soft Second

3.5% and 5% DPA
600+ FICO Score

Rate Advantage Program

3.5% and 5% DPA
640+ FICO Score
LEARN MORE

DPA Edge: Repayable

3.5% and 5% DPA
600+ FICO Score
LEARN MORE

CONVENTIONAL

HomeReady®

3% and 5% DPA
620+ FICO score
LEARN MORE

Conventional Standard

3% and 5% DPA
620+ FICO score
LEARN MORE

Chenoa Fund offerings:

  • Up to 5% down payment assistance
  • FHA program offerings with a minimum credit score of 600
  • Industry-leading customer service that guides homebuyers through the home buying process
  • 18 months of post purchase counseling for homebuyers
  • Minority-focused initiatives to help educate underserved communities about building wealth through sustainable homeownership
Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
 
American Mortgage Solutions, Inc.
 

Text/call:      502-905-3708

fax:            502-327-9119
email:
          kentuckyloan@gmail.com

 

Kentucky Housing Corporation (KHC)



Kentucky First-Time Home Buyer Programs 



There are basically 4 mortgage programs for first time home buyers in Kentucky to consider:
Kentucky First-Time Home Buyer Programs 

. Kentucky Housing Corp or KHC
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.

Down Payment Assistance for Ky First Time Home Buyer, 100% Financing

Down Payment: There are still housing programs that exist for Kentucky home buyers whereas you can purchase a home with no down payment. You will need a 620 mid credit score to purchase a home using the KHC loan programs for their no down payment credit requirements.

How the Down Payment Assistance Program (DAP) Works

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.

Home Buyer Eligibility
•  KHC can help both first time and repeat home buyers statewide.
•  Must be a U.S. citizen or legal status to be in U.S.
•  Applicant’s income ONLY through Secondary Market.
•  Property must be the borrower’s principal residence.
•  Any Borrower that meets both the income and purchase price limit can have access to 
Down Payment Assistance.

Kentucky Housing Credit Standards
•   620 minimum credit score required for FHA, VA, & RHS.
•   660 minimum credit score required for Conventional.
•   Debt ratios: 40/50%
•   Collections in most cases do not need to be paid-off in full.
•   Bankruptcies and foreclosures must be discharged two to seven years.
•   Non-taxable income can be grossed-up.

Property Eligibility
•  Both new and existing property.
•  Both new & existing Manufactured Housing.
•  With RHS only new construction Manufactured housing is allowed.
•  Purchase price limit of $346,644 for Secondary Market or $311,997 for Tax Credit.
•  Full appraisal required on all KHC loans.
•  With Existing Property, VA is the only loan product that requires a termite inspection.
•  A termite soil treatment certificate is required on ALL new construction properties 
except on conventional loans.

Joel Lobb (NMLS#57916)
Senior Loan Officer

text or call 502-905-3708 cell

kentuckyloan@gmail.com

This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans.

All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines

Remember, we are even available this weekend for pre-qualifications or questions. Call our cell phone or email us. If you miss us, leave a message and we WILL call you back