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