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

 

Down payment Assistance for Kentucky First Time Home buyers 2022


This type of loan is administered  by KHC in the state of Kentucky. They typically have $6000 down payment assistance year around, that is in the form of a second mortgage that you pay back over 10 years.
Sometimes they will come to market with other down payment assistance and lower market rates to benefit lower income households with not a lot of money for down payment.
KHC offers FHA, VA, USDA, and Conventional loans with their minimum credit scores being set at 620 for all programs. The conventional loan requirements at 660

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 $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.

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.

  • Kentucky First-time home buyer qualifications

     KHC’s assistance programs.

    To qualify for the agency’s loans, you must:

    • Fall within your county’s “secondary market” income limit for qualifying for a reduced-interest loan with fewer overall requirements.
    • Be a U.S. citizen or qualified noncitizen.
    • Have a credit score of at least 620 (though some programs will require a higher score).

    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.

    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 $346,644 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 $346,644​ 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
    • .​

    SECONDARY MARKET FUNDING SOURCE

    • First-time and repeat homebuyers statewide
    • 30-year fixed interest rate
    • Principal residence ONLY
    • Purchase Price Limit:  $346,644
    • Borrower must meet KHC’s Secondary Market Income Limits

    KENTUCKY HOUSING CORPORATION
    ECONDARY MARKET
    GROSS ANNUAL APPLICANT’S INCOME LIMITATIONS
    Secondary Market Purchase Price Limit — $346,644

    KENTUCKY HOUSING CORPORATION 2021 SECONDARY MARKET GROSS ANNUAL APPLICANT’S INCOME LIMITATIONS

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.”

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.”


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


Text/call 502-905-3708
kentuckyloan@gmail.com

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346


Text/call 502-905-3708
kentuckyloan@gmail.com

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Text/call:      502-905-3708

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