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, 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 640.
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 640.
•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 640.
•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.
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.
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I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 1300 Kentucky families buy their first home or refinance their current mortgage for a lower payment; Kentucky First time buyers we still how available down payment assistance with KHC. Free Mortgage applications/ same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS 1738461
Kentucky Housing first mortgage loans
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.