KHC down payment assistance | FHA, VA or Rural Housing Kentucky


 

 

 

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Zero Down Home Loans

KHC down payment assistance | FHA, VA or Rural Housing Kentucky

 

***Kentucky housing IMPORTANT GUIDELINES*** KHC Guidelines

Jefferson, Oldham and Bullitt Co. requirements for New Bond Funds:

Maximum purchase price: $258,000

Maximum household income limits: $ 61,500 (1 or 2 person households) $70,725 ( 3 or more in the household)

Maximum DTI ratios with AUS approve/eligible: 40/45

Minimum credit score: 620 for govt. loans (FHA, VA and Rural Housing)

Maximum seller paid fees: 6.0% of purchase price

Borrower must be: 1st time homebuyer OR purchase in a “targeted” county (note: Jefferson, Bullitt and

Oldham Counties are NOT “targeted counties).

U.S. citizen or resident alien

Purchasing a primary residence to owner occupy

Kentucky Housing recognizes that down payments, closing costs and prepaids 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 needs.

Regular Down payment Assistance Program (DAP)

  • Purchase price up to $243,000.
  • Assistance in the form of a loan up to $4,000 in $100 increments.
  • Repayable over a seven-year term at 6 percent.  A DAP of $4,000 over 7 years at 6 percent interest would equal a payment of $58.44.
  • Available to all KHC first mortgage loan recipients who are first-time homebuyers in non-targeted counties and first and second-time homebuyers in targeted counties.

HOME-DAP

  • Purchase price up to $195,700.
  • Assistance up to $4,500
  • No monthly repayment; forgiven over five years.
  • Existing homes only.
  • Borrowers must meet HOME-income guidelines.

HOME Special Program

  • Purchase price up to $195,700.
  • Assistance up to $10,000
  • No monthly repayment; forgiven over five years.
  • Existing homes only.
  • Borrowers must meet HOME-income guidelines.
  • Eligible borrowers include:
    • Households that include a person with a permanent disability and who receives disability income (SSI, SSDI, Veterans Disability etc.).
    • Households where at least one of the home buyers is age 62 or older.

HOME Family Program

  • Purchase price up to $195,700.
  • Assistance up to $10,000
  • No monthly repayment; forgiven over five years.
  • Existing homes only.
  • Borrowers must meet HOME-income guidelines.
  • Eligible borrowers include:
    • Single- and two-parent households that have at least one dependent child under the age of 18 living in the household and that are first-time home buyers (have not owned a home or had an ownership interest in a home in the last 3 years).

More about down payment and closing costs

  • No liquid asset review and no limit on borrower reserves for Regular DAP.
  • Borrowers may retain two months’ house payments in reserve while using available funds first before looking for any form of HOME DAP assistance.
  • Specific credit underwriting standards may apply to down payment programs.

 

KHC Loan Programs

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  • All Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.
  • The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.
  • To qualify, you must meet KHC’s regular income guidelines, make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history.
  • Some Kentucky Housing loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years.  However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006.  The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional

  • Insured by approved mortgage insurance company.
  • Minimum credit score of 660 or better.
  • Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance.

FHA

  • Insured by the Federal Housing Administration.
  • Down payments as little as 3.5 percent.
  • Can use DAP for 3.5 percent down payment requirement.
  • Upfront and monthly mortgage insurance.
  • Minimum credit score of 620.

VA

  • Guaranteed by the Veterans Administration for qualified military veterans.
  • No down payment if the property appraises for the sale price or greater.
  • Credit underwriting is flexible.
  • Minimum credit score of 620.
  • No monthly mortgage insurance payments.

RHS

  • Guaranteed by Rural Housing Services (RHS).
  • Home must be located in a rural area as defined by RHS.
  • No down payment if the property appraises for the sale price or greater.
  • Minimum credit score of 620.
  • No monthly mortgage insurance payments.

Mortgage Credit Certificates (MCC)

Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan.  MCCs are NOT mortgages.  They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment.  That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay.  The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan.  But an MCC gives you a tax credit of 25 percent (not to exceed $2,000).  You can still deduct the remaining 75 percent interest on your income taxes.  A tax credit is not the same as a tax deduction.  A tax deduction reduces the portion of your income that is taxed, so you pay less.  A tax credit is a direct, dollar for dollar reduction in the total tax you owe.  The MCC is effective for the life of the loan as long as you live in the home.  If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.

Special First Mortgage Loan Programs

New Construction Program for Single-Parent, Disabled and Elderly Households offers loans for newly constructed houses at interest rates from 1 to 6 percent. These limited funds are available, usually in July, on a first-come, first-served basis.

Guidelines

  • Interest rate determined by the families’ ability to repay the loan.
  • For new homes with a purchase price of $115,000 or less.
  • Eligible borrowers:
    • Single parents (at least one dependent under the age of 18 must live in the home.)
    • Households with a person who has a permanent disability and who receives some form of disability income (SSI, SSDI, Veterans Disability etc.).
    • Households where at least one of the home buyers is age 62 or older.
  • Income guidelines:
    • $28,000 for a household of 1 or 2 people; or
    • $33,000 for a household of 3 or more people.
  • Kentucky Housing’s DAP loan program may be used for down payment and closing cost assistance.

Applying for a Kentucky Housing loan is easy. Just contact us at 502-905-3708 or email us at

kentuckyloan@gmail.com for an application..It’s free –What are you waiting for?

 

 

 

100% financing-Downpayment Assistance and Zero Down Home loans Exist


Joel Lobb
Senior Mortgage Loan Officer
Key Financial Mortgage
107 S. Hurtsbourne Parkway
Louisville Ky 40222



ph# 502-905-3708


fax# 502-895-2266
jlobb@keyfinllc.com






USDA

GRH Guaranteed Rural Housing Program
100% financing

Talk with us about this 100 percent financing program if you are looking to buy or refinance a single family home in a rural area. All of Kentucky may be eligible by county and income limit. Contact us to verify if your property is eligible.

Some key features include:

– No PMI. That’s right, no private mortgage insurance. Like VA, this program has a Guaranteed fee that can be financed into the loan the same way VA loans have a Funding fee.

– 6% seller help/contribution is allowed

– No minimum contribution from your own funds. FHA has a 3% requirement. There are also no cash reserves required, as is the case with your typical conventional loan.

– This program only offers a fixed rate option for primary 1 unit residences. Current maximum loan amount is $417,000.

There are income limitations to qualify. Contact a Choice Finance Loan Officer and we will help you find a home where you can take advantage of this great 100% financing program. Contact us to see if your property is eligible for the USDA 100% program.

VA financing
100% financing

The VA does not make home loans, they insure them. We are VA approved and can help you with your VA loan request. Some VA benefits include:

– No downpayment is required in most cases

– Borrow up to 100% of purchase price

– Lower closing costs

– Mortgage is assumable

– No Private Mortgage Insurance (PMI)

– No penalties if you prepay the loan

– You may be eligible for waiver of VA funding fee

– VA support during temporary financial difficulties

More on 100% VA financing

FHA financing & downpayment help

A seller credit and gift funds are allowed for the entire down payment, closing costs, and pre-paid items. Down payment can come as a gift from a family member, an employer (tip: convert a raise or bonus into downpayment assistance), or from a nonprofit institution or government grant.

More information on FHA and downpayment help

–call 502-905-3708 for your free preapproval

Office located at 107 South Hurstbourne Parkway Louisville Ky 40222

My Community financing
100% financing

Choice Finance® lends on the Fannie Mae, My Community program. This program was very popular and put many first time home buyers into their homes. This program offered 100% financing up to $417,000 loan amount on fixed and adjustable rate products. What were very flexible qualifying guidelines for income and credit history have now tightened significantly. Many scenarios are now requiring at least 5% down with My Community.

More on the My Community program

MORE MORTGAGE PROGRAMS

Mortgage Loans, Louisville, Kentucky


Mortgage loans, Louisville, Ky Refinance FHA Loans

Refinance your existing mortgage to lower your payment, convert from an adjustable to a fixed rate mortgage, or cash out your equity for home improvements, college, or credit card consolidation. Interest rates are low and there are programs to help no matter what your credit rating is. Start saving now…

FHA loans are available to purchase a new home, refinance an existing mortgage or for home improvement. FHA insured mortgages carry less risk for the lender, so they often have lower rates and more flexible repayment terms. If you have excellent credit or less than perfect credit, there is an FHA mortage, FHA Refinance or FHA Home Improvement Loan to meet your needs. Act now, FHA lenders are waiting to help…

Home Loans VA Loans

Our network of lenders will help you get into the home of your dreams. Whether you are a first time buyer, a buyer with little money down, you have great credit or poor credit, our network of lenders has the loan for you at a price you can afford. Low rates and afforable payments on your Home Loan are just a click away…

Are you a Veteran? The VA provides outstanding benefits to Vererans through the VA Loan program. VA Mortgage loans are government insured loans just like FHA loans, but with no down payments and no MIP (mortgage insurance premium), in most cases. Saving you thousands of dollars over the term of your loan. A VA loan can be your answer to homeownership…

Louisville Ky First-time Home buyer loans—–First Time Home Buyers Louisville Kentucky


First Time Home Buyer – Louisville, KY

KHC Loan Programs

•All Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.

•The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.

•To qualify, you must meet KHC’s regular income guidelines, make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history.

•Some Kentucky Housing loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional

•Insured by approved mortgage insurance company.

•Minimum credit score of 660 or better.

•Quick turnaround time, 3 percent down payment and no up-front mortgage insurance.

•Can use DAP for 3 percent down payment requirement.

FHA

•Insured by the Federal Housing Administration.

•Down payments as little as 3.5 percent.

•Can use DAP for 3.5 percent down payment requirement.

•Upfront and monthly mortgage insurance.

•Minimum credit score of 620.

VA

•Guaranteed by the Veterans Administration for qualified military veterans.

•No down payment if the property appraises for the sale price or greater.

•Credit underwriting is flexible.

•Minimum credit score of 620.

•No monthly mortgage insurance payments.

RHS

•Guaranteed by Rural Housing Services (RHS).

•Home must be located in a rural area as defined by RHS.

•No down payment if the property appraises for the sale price or greater.

•Minimum credit score of 620.

•No monthly mortgage insurance payments.

Mortgage Credit Certificates (MCC)

A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.

Secondary Market Programs

(for repeat buyers and refinancing homeowners)

•Conventional ONLY

•Insured by approved mortgage insurance company.

•Minimum credit score of 660 or better.

•Quick turnaround time.

•Manufactured home are not eligible.

•New and existing properties up to a maximum purchase price of $316,000.

Special First Mortgage Loan Programs

New Construction Program for Single-Parent, Disabled and Elderly Households offers loans for newly constructed houses at interest rates from 1 to 6 percent. These limited funds are available, usually in July, on a first-come, first-served basis.

Guidelines

•Interest rate determined by the families’ ability to repay the loan.

•For new homes with a purchase price of $115,000 or less.

•Eligible borrowers:

◦Single parents (at least one dependent under the age of 18 must live in the home.)

◦Households with a person who has a permanent disability and who receives some form of disability income (SSI, SSDI, Veterans Disability etc.).

◦Households where at least one of the home buyers is age 62 or older.

•Income guidelines:

◦$28,000 for a household of 1 or 2 people; or

◦$33,000 for a household of 3 or more people.

•Kentucky Housing’s DAP loan program may be used for down payment and closing cost assistance.

Applying for a Kentucky Housing loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing loan.

Call 502-905-3708 or email me at kentuckyloan@gmail.com
 
office located 107 South Hurstbourne Parkway Louisville Ky 40222

First Time Home Buyer Programs Available in Kentucky.


First Time Home Buyer

 Programs in Kentucky

Complete First Time Home Buyer Programs Available in Kentucky.

The state agency created by the legislature in Kentucky to offer first time home buyer programs is the Kentucky Housing Corporation. Here is a summary of the current first time home buyer programs that are offered:
Regular Down payment Assistance Program (DAP)
Assistance up to $5,000.
Available to all KHC first mortgage loan recipients.
Repaid over 7 or 10 years at a low fixed interest rate (6.0%)
HOME-DAP
Assistance up to $4,500
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
HOME Special Program
Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Purchase price may not exceed $200,000.
Eligible borrowers include:
Households that include a person with a permanent disability and who receives disability income (SSI, SSDI, Veterans Disability etc.).
Households where at least one of the home buyers is age 62 or older.
HOME Family Program
Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Purchase price may not exceed $200,000.
Eligible borrowers include:
Single- and two-parent households that have at least one dependent child under the age of 18 living in the household and that are first-time home buyers (have not owned a home or had an ownership interest in a home in the last 3 years).

Obama Signs First-Time Homebuyer Tax Credit Extension


Obama Signs First-Time Homebuyer Tax Credit Extension

By JON PRIOR

November 6, 2009 3:44 PM CST

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President Barack Obama signed the “Worker, Homeownership and Business Assistance Act of 2009” into law on Friday, extending the first-time homebuyer tax credit as well as certain jobless benefits at a time when the US unemployment rate has officially reached 10.2%.

With the first-time homebuyer tax credit originally scheduled to expire on Dec. 1, 2009, HR 3548 now allows first-time buyers to claim 10% of the purchase price of their home, up to $8,000 for single or married taxpayers filing jointly, if they close on the purchase by midnight June 30, 2010. Taxpayers must purchase or be locked into a contract to close before midnight on April 30, 2010.

The credit has provided more than 1.4m to taxpayers as of September 2009, according to the Internal Revenue Service.

New provisions accompany the extension. The credit is allowed for those with incomes up to $125,000 or $225,000 for taxpayers filing jointly. The credit reduces for those with incomes between $125,000 and $145,000 – or $225,000 and $245,000 if filing jointly. Anyone with an income higher than $145,000, $245,000 if filing jointly, cannot not receive credit.

Taxpayers who have lived in their home for five consecutive years during the eight years before closing on a new home may qualify for a reduced credit – $6,500 joint filers and $3,250 for those who file jointly.

The bill passed the House of Representatives on September 22, 2009, with 331 votes for and 83 votes against. When the bill landed in the Senate, it passed with 98 votes for and 0 votes against


Few using state’s home tax credit

Official hoped $5,000 rebate would spur new-house sales

By Chris Otts • cotts@courier-journal.com • October 17, 2009

As the sun sets on the $8,000 federal tax credit for first-time home buyers, some Louisvillians are taking advantage of a lesser-known deal: up to $5,000 off their Kentucky tax bill for buying a new house.

But it’s unclear whether the state credit, which went into effect July 26 and cannot be combined with the federal credit, is actually spurring sales. The credit can be used only by buyers of new homes that hadn’t been occupied previously.

So far, 70 Jefferson County home buyers have been approved for the credit, said Valeria Cummings, spokeswoman for the state Department of Revenue.

For comparison, 2,244 homes were sold in August and September by members of the Greater Louisville Association of Realtors, whose agents work mostly in Jefferson, Bullitt and Oldham counties. Statewide, 414 buyers have been approved, obligating the state for more than $2 million in tax rebates, Cummings said.

The credit runs out July 26, 2010, or once the state has approved $25 million in rebates, whichever comes first.

“It was hoped by offering the credit, more people would look at buying homes, which could only help improve the economy,” Cummings said.

Financial adviser Sean Miranda and his wife, Jackie, were among the first in the state to qualify for the deal in July after buying a $350,000 house off Urton Lane in Middletown. Sean Miranda said they needed a bigger house after being surprised with twins eight months ago.

But it was getting the house for $50,000 off the asking price — not the tax credit — that motivated them to close the deal, Miranda said.

“It (the credit) was certainly the icing on the cake,” he said. “But more important was the opportunity to buy a brand new home at a tremendous discount.”

Three other Louisville and Bullitt County buyers who took advantage of the credit also said they would have bought a new house anyway. Josh Grimes said he and his wife will probably use the money to buy an appliance or bedroom furnishings for their new house in Zoneton.

The credit is designed to help move a glut of new houses off the market, thus clearing the way for more home construction, which has a big economic impact, said Bob Weiss, executive vice president of the Home Builders Association of Kentucky.

(2 of 2)

The Mirandas’ house in Middletown had been on the market for two years, said Greg Bauer, the builder. But Bauer said he hasn’t built another house since because of weak demand for new homes — a reality the rebate hasn’t changed.

Weiss, who helped draft the legislation, said it’s too soon to tell whether the credit is spurring sales. “I think that’s a story left untold,” he said.

Not only is the Kentucky credit smaller than the federal credit, it also is nonrefundable. So unlike the federal deal, the tax credit is limited to the amount of the buyer’s state tax liability. The only way to get the full $5,000 is to owe that much in state taxes. If your tax bill is, for example, $2,000, that’s the limit of the credit you can collect.

In Kentucky, those making nearly $90,000 per year face a $5,000 tax liability. Unlike the federal credit, the state offer isn’t limited to first-time home buyers. Also, the federal credit starts to phase out for individuals making more than $75,000 or married couples making more than $150,000.

Joe Pusateri, president of Elite Homes, estimates about seven buyers of his houses, which start at about $250,000, have qualified for the state credit.

“At least it’s nice that we have something that kind of fits our customer base,” he said.

Industry leaders hope the federal first-time credit will eventually spur sales of more expensive homes, too, once buyers are able to sell their starter houses.

Recently, members of the Louisville Realtors association have had three months of sales increases over the same period a year earlier. That follows two years of declining sales.

Louisville real estate agent Teresa Morgan said the industry has promoted the federal tax credit more heavily than the state credit. Many buyers who qualify are unaware of it, she said.

“I don’t get people calling me and saying, ‘What can I do to take advantage of the $5,000?’” said Morgan, who also leads the sales and marketing council for the Home Builders Association of Louisville.

Weiss said the state home builders group is planning a big marketing push for the credit, especially once the federal rebate expires Dec. 1.

“Just like the $8,000 one, it might take a while to catch on,” he said.

It’s also not as easy to claim the Kentucky credit, Morgan said. For example, the state requires a form be sent only by fax to the revenue cabinet within seven days of the closing.

“It’s real particular with how you have to file for it — a little confusing,” said Julie Riley, who qualified for the deal after buying a $220,000 house in Mount Washington with her husband, Brian.

The Rileys didn’t find out about the credit until they had decided to buy a house, Julie Riley said. But considering the couple paid almost $5,000 in state taxes last year, this year’s credit will be “a nice bonus.”