2020 Welcome Home Program for Kentucky Home Buyers.


via 2020 Welcome Home Program for Kentucky Home Buyers.

Kentucky Welcome Home Grant Income Limits for 2020

What is the Welcome Home Program?

The Welcome Home Program (WHP) offers grants to fund reasonable down payments and closing costs incurred in conjunction with the acquisition or construction of owner-occupied housing by low- and moderate-income homebuyers. The grants are limited to $5,000 per homebuyer and Members are subject to an aggregate limit of $200,000 per offering. All funds are reserved for specific homebuyers purchasing specific homes and cannot be transferred to other homebuyers or to other homes. Welcome Home funds will be available for reservation on a first-come, first-served basis beginning at 8:00 AM ET on March 3, 2020, and will remain available until all funds have been reserved.

 

Who Can Use the WHP?

The FHLB has established a set-aside of Affordable Housing Program (AHP) funds to help create homeownership. These funds are available to Members as grants to assist their mortgage loan applicants in the home buying process. This is our most widely used program, ideally suited to the needs of community lenders and their customers.

 

What are the Program Requirements?

Below is an abbreviated list of program eligibility requirements:

  • The total income for all occupants must be at or below 80 percent of the Mortgage Revenue Bond (MRB) limit for the county and state where the property is located. The FHLB has an Income and Affordability Workbook to assist in determining household income eligibility.
  • Homebuyers must contribute at least $500 of their own funds towards down payment and/or closing costs.
  • WHP applicants do not have to be first-time homebuyers. However, all first-time homebuyers are required to complete a homeownership counseling program.
  • WHP grant funds are intended only for homebuyers who qualify for the first mortgage based on their own merit. Co-signors and co-borrowers are not allowed unless they will occupy the home as their primary residence and their incomes are included in determining eligibility.
  • WHP grant funds may be used in conjunction with other local, state and federal funding sources and with the FHLB Cincinnati’s Community Investment Cash Advance Programs.
  • The Member who reserves the WHP funds must originate the first loan, but the loan may close in the name of a third party.
  • The interest rate for the first mortgage may not exceed 7.50 percent.
  • The interest rate for the second mortgage may not exceed 11.00 percent.
  • Only second mortgages provided by formal organizations, community development financial institutions, housing finance agencies, non-profit organizations, etc. are acceptable.

All eligible property assisted with WHP funds is subject to a five-year retention mechanism (Retention Agreement), which may require the household to repay all, or a portion, of the subsidy, if the home is sold or refinanced within five years from the closing of the transaction.

 

How Do I Apply?

Information for Homebuyers

Reserving WHP Funds

Homebuyers must apply with one of our Member institutions. Click here to search our Member Directory.

Members may reserve funds via the Welcome Home Program link through the FHLB’s Members Only portal by submitting an online Reservation Request with supporting documentation. Instructions for accessing Members Only may be found here.

The FHLB will perform a preliminary review of the Reservation Request and the documentation submitted to determine eligibility of the homebuyer, availability of funds in the program, and availability of funds for the Member. If any of the information is incomplete, additional documentation or information may be required. Note: The Reservation Request will be denied upon receipt if a fully executed loan application is not included.

Written notification will be provided to the Member as to the homebuyer’s eligibility. Submission of a Reservation Request does not constitute an approval of funds. Funds are reserved only upon written notification of approval from the FHLB.

Please allow four weeks for the FHLB to review the Reservation Request and supporting documentation.

Disbursing WHP Funds

Welcome Home funds will only be disbursed after closing. The FHLB has some general guidance and specific instructions that Members and Closing Agents should use in closing mortgages using Welcome Home funds. Funds will be disbursed only to the extent they are required to fill the gap for down payment, closing costs, and counseling fees.

Members may submit a Request for Payment of Reserved Funding with supporting documentation via the Welcome Home Program link through the FHLB’s Members Only portal. Submission of a Request for Payment of Reserved Funding is not an approval of funds disbursement. Once the Request for Payment of Reserved Funding has been reviewed and approved, funds will be disbursed to the Member.

In the event the FHLB determines that funds were used for an ineligible expense, the grant will be reduced by the amount of the ineligible expense unless the household brings adequate funds to the closing to cover the amount of the ineligible expense. Under no circumstances will cash back to the homebuyer be permitted.

Please allow four to six weeks for the FHLB to review the Request for Payment of Reserved Funding and supporting documentation.

Kentucky Welcome Home Grant Income Limits for 2020

County 100% limits 80% limits
1-2 Persons 3+ Persons 1-2 Persons 3+ Persons
Adair $75,240 $87,780 $60,192 $70,224
Allen $75,240 $87,780 $60,192 $70,224
Anderson $68,800 $79,120 $55,040 $63,296
Ballard $62,700 $72,105 $50,160 $57,684
Barren $62,700 $72,105 $50,160 $57,684
Bath $75,240 $87,780 $60,192 $70,224
Bell $75,240 $87,780 $60,192 $70,224
Boone $81,300 $93,495 $65,040 $74,796
Bourbon $89,400 $104,300 $71,520 $83,440
Boyd $62,700 $72,105 $50,160 $57,684
Boyle $75,240 $87,780 $60,192 $70,224
Bracken $97,560 $113,820 $78,048 $91,056
Breathitt $75,240 $87,780 $60,192 $70,224
Breckinridge $75,240 $87,780 $60,192 $70,224
Bullitt $76,400 $87,860 $61,120 $70,288
Butler $75,240 $87,780 $60,192 $70,224
Caldwell $62,700 $72,105 $50,160 $57,684
Calloway $62,700 $72,105 $50,160 $57,684
Campbell $81,300 $93,495 $65,040 $74,796
Carlisle $75,240 $87,780 $60,192 $70,224
Carroll $75,240 $87,780 $60,192 $70,224
Carter $75,240 $87,780 $60,192 $70,224
Casey $75,240 $87,780 $60,192 $70,224
Christian $60,900 $70,035 $48,720 $56,028
Clark $89,400 $104,300 $71,520 $83,440
Clay $75,240 $87,780 $60,192 $70,224
Clinton $75,240 $87,780 $60,192 $70,224
Crittenden $75,240 $87,780 $60,192 $70,224
Cumberland $75,240 $87,780 $60,192 $70,224
Daviess $68,500 $78,775 $54,800 $63,020
Edmonson $75,240 $87,780 $60,192 $70,224
Elliott $75,240 $87,780 $60,192 $70,224
Estill $75,240 $87,780 $60,192 $70,224
Fayette $74,500 $85,675 $59,600 $68,540
Fleming $75,240 $87,780 $60,192 $70,224
Floyd $75,240 $87,780 $60,192 $70,224
Franklin $68,200 $78,430 $54,560 $62,744
Fulton $75,240 $87,780 $60,192 $70,224
Gallatin $97,560 $113,820 $78,048 $91,056
Garrard $75,240 $87,780 $60,192 $70,224
Grant $75,240 $87,780 $60,192 $70,224
Graves $62,700 $72,105 $50,160 $57,684
Grayson $75,240 $87,780 $60,192 $70,224
Green $75,240 $87,780 $60,192 $70,224
Greenup $62,700 $72,105 $50,160 $57,684
Hancock $68,500 $78,775 $54,800 $63,020
Hardin $67,600 $77,740 $54,080 $62,192
Harlan $75,240 $87,780 $60,192 $70,224
Harrison $75,240 $87,780 $60,192 $70,224
Hart $75,240 $87,780 $60,192 $70,224
Henderson $67,200 $77,280 $53,760 $61,824
Henry $91,680 $106,960 $73,344 $85,568
Hickman $75,240 $87,780 $60,192 $70,224
Hopkins $75,240 $87,780 $60,192 $70,224
Jackson $75,240 $87,780 $60,192 $70,224
Jefferson $76,400 $87,860 $61,120 $70,288
Jessamine $74,500 $85,675 $59,600 $68,540
Johnson $75,240 $87,780 $60,192 $70,224
Kenton $81,300 $93,495 $65,040 $74,796
Knott $75,240 $87,780 $60,192 $70,224
Knox $75,240 $87,780 $60,192 $70,224
Larue $81,120 $94,640 $64,896 $75,712
Laurel $62,700 $72,105 $50,160 $57,684
Lawrence $75,240 $87,780 $60,192 $70,224
Lee $75,240 $87,780 $60,192 $70,224
Leslie $75,240 $87,780 $60,192 $70,224
Letcher $75,240 $87,780 $60,192 $70,224
Lewis $75,240 $87,780 $60,192 $70,224
Lincoln $75,240 $87,780 $60,192 $70,224
Livingston $62,700 $72,105 $50,160 $57,684
Logan $75,240 $87,780 $60,192 $70,224
Lyon $63,600 $73,140 $50,880 $58,512
Madison $75,240 $87,780 $60,192 $70,224
Magoffin $75,240 $87,780 $60,192 $70,224
Marion $75,240 $87,780 $60,192 $70,224
Marshall $62,700 $72,105 $50,160 $57,684
Martin $75,240 $87,780 $60,192 $70,224
Mason $75,240 $87,780 $60,192 $70,224
McCracken $62,700 $72,105 $50,160 $57,684
McCreary $75,240 $87,780 $60,192 $70,224
McLean $82,200 $95,900 $65,760 $76,720
Meade $62,700 $72,105 $50,160 $57,684
Menifee $75,240 $87,780 $60,192 $70,224
Mercer $63,200 $72,680 $50,560 $58,144
Metcalfe $75,240 $87,780 $60,192 $70,224
Monroe $75,240 $87,780 $60,192 $70,224
Montgomery $75,240 $87,780 $60,192 $70,224
Morgan $75,240 $87,780 $60,192 $70,224
Muhlenberg $62,700 $72,105 $50,160 $57,684
Nelson $79,320 $92,540 $63,456 $74,032
Nicholas $75,240 $87,780 $60,192 $70,224
Ohio $75,240 $87,780 $60,192 $70,224
Oldham $76,400 $87,860 $61,120 $70,288
Owen $75,240 $87,780 $60,192 $70,224
Owsley $75,240 $87,780 $60,192 $70,224
Pendleton $97,560 $113,820 $78,048 $91,056
Perry $75,240 $87,780 $60,192 $70,224
Pike $75,240 $87,780 $60,192 $70,224
Powell $75,240 $87,780 $60,192 $70,224
Pulaski $75,240 $87,780 $60,192 $70,224
Robertson $75,240 $87,780 $60,192 $70,224
Rockcastle $75,240 $87,780 $60,192 $70,224
Rowan $75,240 $87,780 $60,192 $70,224
Russell $75,240 $87,780 $60,192 $70,224
Scott $89,400 $104,300 $71,520 $83,440
Shelby $76,200 $87,630 $60,960 $70,104
Simpson $62,700 $72,105 $50,160 $57,684
Spencer $91,680 $106,960 $73,344 $85,568
Taylor $62,700 $72,105 $50,160 $57,684
Todd $75,240 $87,780 $60,192 $70,224
Trigg $60,900 $70,035 $48,720 $56,028
Trimble $91,680 $106,960 $73,344 $85,568
Union $62,700 $72,105 $50,160 $57,684
Warren $62,700 $72,105 $50,160 $57,684
Washington $75,240 $87,780 $60,192 $70,224
Wayne $75,240 $87,780 $60,192 $70,224
Webster $75,240 $87,780 $60,192 $70,224
Whitley $75,240 $87,780 $60,192 $70,224
Wolfe $75,240 $87,780 $60,192 $70,224
Woodford $74,500 $85,675 $59,600 $68,540

 

 

What is the Welcome Home Program?

The Welcome Home Program (WHP) offers grants to fund reasonable down payments and closing costs incurred in conjunction with the acquisition or construction of owner-occupied housing by low- and moderate-income homebuyers. The grants are limited to $7,500 for homebuyers who are honorably discharged veterans, active duty military personnel, reservists, or surviving spouses of service personnel and $5,000 for all other homebuyers. Members are subject to an aggregate limit of $200,000 per offering. All funds are reserved for specific homebuyers purchasing specific homes and cannot be transferred to other homebuyers or to other homes. Welcome Home funds will be available for reservation on a first-come, first-served basis beginning at 8:00 AM ET on March 2, 2020, and will remain available until all funds have been reserved.

 

Who Can Use the WHP?

The FHLB has established a set-aside of Affordable Housing Program (AHP) funds to help create homeownership. These funds are available to Members as grants to assist their mortgage loan applicants in the home buying process. This is our most widely used program, ideally suited to the needs of community lenders and their customers.

 

What are the Program Requirements?

Below is an abbreviated list of program eligibility requirements:

  • The total income for all occupants must be at or below 80 percent of the Mortgage Revenue Bond (MRB) limit for the county and state where the property is located. The FHLB has an Income and Affordability Workbook to assist in determining household income eligibility.
  • Homebuyers must contribute at least $500 of their own funds towards down payment and/or closing costs.
  • WHP applicants do not have to be first-time homebuyers. However, all first-time homebuyers are required to complete a homeownership counseling program.
  • WHP grant funds are intended only for homebuyers who qualify for the first mortgage based on their own merit. Co-signors and co-borrowers are not allowed unless they will occupy the home as their primary residence and their incomes are included in determining eligibility.
  • WHP grant funds may be used in conjunction with other local, state and federal funding sources and with the FHLB Cincinnati’s Community Investment Cash Advance Programs.
  • The Member who reserves the WHP funds must originate the first loan, but the loan may close in the name of a third party.
  • The interest rate for the first mortgage may not exceed 7.50 percent.
  • The interest rate for the second mortgage may not exceed 11.00 percent.
  • Only second mortgages provided by formal organizations, community development financial institutions, housing finance agencies, non-profit organizations, etc. are acceptable.

All eligible property assisted with WHP funds is subject to a five-year retention mechanism (Retention Agreement), which may require the household to repay all, or a portion, of the subsidy, if the home is sold or refinanced within five years from the closing of the transaction.

 

How Do I Apply?

Information for Homebuyers

Reserving WHP Funds

Homebuyers must apply with one of our Member institutions. Click here to search our Member Directory.

Members may reserve funds via the Welcome Home Program link through the FHLB’s Members Only portal by submitting an online Reservation Request with supporting documentation. Instructions for accessing Members Only may be found here.

The FHLB will perform a preliminary review of the Reservation Request and the documentation submitted to determine eligibility of the homebuyer, availability of funds in the program, and availability of funds for the Member. If any of the information is incomplete, additional documentation or information may be required. Note: The Reservation Request will be denied upon receipt if a fully executed loan application is not included.

Written notification will be provided to the Member as to the homebuyer’s eligibility. Submission of a Reservation Request does not constitute an approval of funds. Funds are reserved only upon written notification of approval from the FHLB.

Please allow four weeks for the FHLB to review the Reservation Request and supporting documentation.

Disbursing WHP Funds

Welcome Home funds will only be disbursed after closing. The FHLB has some general guidance and specific instructions that Members and Closing Agents should use in closing mortgages using Welcome Home funds. Funds will be disbursed only to the extent they are required to fill the gap for down payment, closing costs, and counseling fees.

Members may submit a Request for Payment of Reserved Funding with supporting documentation via the Welcome Home Program link through the FHLB’s Members Only portal. Submission of a Request for Payment of Reserved Funding is not an approval of funds disbursement. Once the Request for Payment of Reserved Funding has been reviewed and approved, funds will be disbursed to the Member.

In the event the FHLB determines that funds were used for an ineligible expense, the grant will be reduced by the amount of the ineligible expense unless the household brings adequate funds to the closing to cover the amount of the ineligible expense. Under no circumstances will cash back to the homebuyer be permitted.

Please allow four to six weeks for the FHLB to review the Request for Payment of Reserved Funding and supporting documentation.

 

Additional Information and Technical Assistance

Documentation requested by the FHLB must be emailed to welcomehome@fhlbcin.com. Any documentation requiring an original signature must be mailed to:

FHLB Cincinnati
Welcome Home Program
P.O. Box 598
Cincinnati, OH 45201-0598

For more information or assistance, please contact the Housing & Community Investment Department at (513) 852- 7680 or toll-free (888) 345-2246 or email us at welcomehome@fhlbcin.com.

For assistance with Members Only, please contact the Service Desk at 800-781-3090.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708

kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

 

Five strategies for first time home buyers Kentucky


 

There are 4 basic things that a Kentucky First Time Home buyers in 2020 needs to show a lender in order to get approved for a mortgage. Each category has so many what ifs and sub plots that each box can read as it’s own novel. In other words, each category has so many variables that can affect what it takes to get approved, but without further adieu here are the four categories in no particular order as each without any of these items, you’re pretty much dead in the water:
1. Income

You need income. You need to be able to afford the home. But what is acceptable income? Let’s just say that there are two ratios mortgage underwriters look at to qualify you for mortgage payment:

First Ratio – The first ratio, top ratio or housing ratio. Basically that means out of all the gross monthly income you make, that no more that X percent of it can go to your housing payment. The housing payment consists of Principle, Interest, Taxes and Insurance. Whether you escrow or not every one of these items are factored into your ratio. There are a lot of exceptions to how high you can go, but let’s just say that if your ratio is 33% or less, generally, across the board, you’re safe.

Second Ratio- The second ratio, bottom ratio or debt ratio includes the housing payment, but also adds all of the monthly debts that the borrower has. So, it includes housing payment as well as every other debt that a borrower may have. This would include, Auto loans, credit cards, student loans, personal loans, child support, alimony….basically any consistent outgoing debt that you’re paying on. Again, if you’re paying less than 45% of your gross monthly income to all of the debts, plus your proposed housing payment, then……generally, you’re safe. You can go a lot higher in this area, but there are a lot of caveats when increasing your back ratio.

What qualifies as income? Basically, it’s income that has at least a proven, two year history of being received and pretty high assurances that the income is likely to continue for at least three years. What’s not acceptable? Unverifiable cash income, short term income and income that’s not likely to continue like unemployment income, student loan aid, VA education benefits,or short term disability are not allowed for a mortgage loan.

2. Assets

What the mortgage underwriter is looking for here is how much can you put down and secondly, how much will you have in reserves after the loan is made to help offset any financial emergencies in the future.

Do you have enough assets to put the money forth to qualify for the down payment that the particular program asks for. The only 100% financing or no money down loans still available in Kentucky for home buyers are available through USDA, VA, and KHC or Kentucky Housing Loans. Most other home buyers that don’t qualify for the no money down home loans mentioned above, will turn to the FHA program. FHA loans currently requires a 3.5% down payment.

Kentucky Home buyers that have access to putting down at least 5% or more, will usually turn to Fannie Mae or Freddie Mac mortgage programs so they can get better pricing when it comes to mortgage insurance.

These assets need to be validated through bank accounts, 401k or retirements account and sometimes gifts from relatives or employer.. Can you borrower the down payment? Sometimes. Generally if you’re borrowing a secured loan against a secured asset you can use that. But rarely can cash be used as an asset. FHA will allow for gifts from relatives for down payments with little as 3.5% down but Fannie Mae will require a 20% down payment when a gift is being used for the down payment on the home.

The down payment scenarios listed above are for Kentucky Primary Residences only. There are stricter down payment requirements for investment homes made in Kentucky.

3. Credit

620 is the bottom score (again with few exceptions) that lenders will permit. Below a 620, then you’re in a world of hurt with most FHA, VA, Fannie Mae and USDA Lenders that we deal with. I do deal with some lenders that offer a FHA loan down to a 560 credit score, but most FHA and VA lenders will wanta 580 to 620 score. Fannie Mae or Conventional loans will not go below 620.

Even at 620, people consider you a higher risk that other folks and are going to penalize you or your borrower with a more expensive loan. 720 is when you really start to get in the “as a lender we love you” credit score. 740 is even better. Watch your credit scores carefully. You have three credit scores from Experian, Equifax and Transunion, and the lender will take your middle score. For example, Experian comes back with a 598, Transunion a 620 score, and Equifax a 615 score, then your qualifying middle credit score would be 615.

Your scores will have to come from the mortgage company’s credit report bureau they use so please be aware that sites like Credit Karma and Credit Sesame will show different estimates of your scores that could vary once the lender pulls your true fico scores. Getting your fico scores costs money, so you can always pay and get your score first or have the lender pull it for free.

AS FAR AS PREVIOUS BANKRUPTCIES AND FORECLOSURES:
Kentucky FHA Mortgage Loans currently requires 3 years removal from a foreclosure or short sale and 2 years on a bankruptcy with good re established credit.

Kentucky Fannie Mae Mortgage Loans currently requires 4 years removal from a bankruptcy, and 7 years on a foreclosure.

Kentucky VA Mortgage Loans currently requires 2 years removal from a bankruptcy or foreclosure with good re established credit.

Kentucky USDA loans require 3 years removal from bankruptcy and foreclosure with good re established credit.

4. Appraisal

Generally, there’s nothing you can do to affect this. Bottom line here is…..”is the value of the house at least the value of what you’re paying for it?” If not, then not good things start to happen. Generally you’ll find less issues with values on purchase transactions, because, in theory, the realtor has done an accurate job of valuing the house prior to taking the listing. The big issue comes in refinancing. In purchase transactions, the value is determined as the

Lower of the value or the contract price!!!

That means that if you buy a $1,000,000 home for $100,000, the value is established at $100,000. Conversely, if you buy a $200,000 home and the value comes in at $180,000 during the appraisal, then the value is established at $180,000. Big issues….Talk to your loan officer.

For each one of these boxes, there are over 1,000 things that can effect if a borrower has reached the threshold to complete that box. Soooooooooooo…..talk to a great loan officer. There are so many loan officers that don’t know what they’re doing. But, conversely, there’s a lot of great ones as well. Your loan is so important! Get a great lender so that you know, for sure, that the loan you want, can be closed on!