Kentucky – Government Backed Loans
Kentucky Housing Corporation, created by the 1972 General Assembly, is a self-supporting, public corporation of the Commonwealth of Kentucky administratively attached to the Finance and Administration Cabinet. A portion of Kentucky Housing’s funds are derived from the interest earned through the sale of tax-exempt mortgage revenue bonds.
Limited Cash-Out Refinance
The Limited Cash-Out Refinance program is available to homeowners if they find they are unable to meet monthly mortgage payments, closing costs, prepaids, or other costs. Cash back to homeowners is given in the amount of 2% of the new loan amount balance or $2, 000, whichever is less.
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Second Mortgage Product
In order to assist homeowners who find they are unable to meet monthly mortgage payments, the Second Mortgage Product offers a second loan in the amount of 4% of the home’s sale price. This loan’s interest rate equals that of the first mortgage, not to be lower than 6%, and is repaid over 10 years time.
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Downpayment Assistance Program – DAP
First-time homebuyers are assisted with downpayment costs in the form of a second mortgage loan through DAP. DAP provides 4% of the home’s purchase price to be used toward the home’s downpayment, and is repaid over 10 years time at the same low rate as the homebuyer’s first KHC loan.
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HOME – DAP
HOME – DAP provides homebuyers with up to $4, 500 in downpayment assistance, which has no monthly repayment and is forgiven after 5 years. HOME – DAP is a second mortgage loan to be used in conjunction with a first KHC loan. The purchase price of the home cannot exceed $195, 700 in order to qualify for HOME – DAP funding.
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HOME Special Program
The HOME Special Program offers assistance to homebuyers who have or who live with a family member who has a permanent disability and receive a disability income, or when at least one of the household’s members is 62 years of age or older. The purchase price of the home cannot exceed $195, 700 in order to qualify for the HOME Special Program, and loaned funds do not exceed $10, 000. There is no monthly repayment, and the loan is forgiven after 5 years.
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HOME Family Program
Assistance in the maximum amount of $10, 000 is given to first-time homebuyers who have at least one dependent under the age of 18 in the household. The maximum purchase price on a home is $195, 700 in order to qualify for the HOME Family Program, there is no monthly repayment and the loan is forgiven in 5 years.
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KHC’s Second Mortgage
KHC’s Second Mortgage provides downpayment assistance in the form of a second loan, in the amount of 4% of the home’s purchase price. The loan is repaid over 10 years at the same low rate as the KHC first mortgage, and the home’s purchase price cannot exceed $330, 000.
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Conventional First Mortgage
In order to qualify for a Conventional First Mortgage, homebuyers must have a minimum credit score of 660. The Conventional First Mortgage offers quick turnaround time, a 3% downpayment and no upfront mortgage insurance. The Downpayment Assistance Program may be used in conjunction with the Conventional First Mortgage in order to meet the 3% requirement.
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FHA First Mortgage
Insured by the Federal Housing Administration, the FHA First Mortgage requires a low minimum downpayment of 3%, and can be used in conjunction with the Downpayment Assistance Program in order to meet that minimum. There is upfront monthly and mortgage insurance with a FHA loan, and no credit score is required.
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VA First Mortgage
The VA First Mortgage is a Federally funded loan offered to qualifying military veterans, and does not require a downpayment if the home appraises for the sale price or greater. No credit score or monthly mortgage insurance payments are required with the VA loan, and credit underwriting is flexible.
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RHS First Mortgage
The RHS First Mortgage is guaranteed by Rural Housing Services. In order to qualify for a RHS loan, a home must be located within a designated rural area. No downpayment is required if the home’s appraised value is the same as the sales price or greater, and there are no monthly mortgage insurance payments.
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New Construction Program
The New Construction Program offers single-parent, disabled and elderly households a 30-year fixed-rate mortgage for newly constructed homes. The interest rate for the New Construction Program ranges from 1% to 6% and is determined by a household’s ability to repay the loan. Funds are limited to a first-come, first-served basis, and income limits apply.
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