100% Financing for Kentucky Home Buyers. VA, KHC, USDA,

Buy a home without draining your savings account. The following attractive Kentucky home loan programs below requires no down payment: Kentucky Housing Corp down payment assistance with 100% Financing Kentucky Rural Housing Mortgage Loans in eligible rural areas allow 100% Financing Kentucky VA Mortgage loans allow for 100% Financing for eligible veterans/active duty Credit scores as low as 640 for KHC and RHS loans and 600 score for FHA and VA Specific mortgage insurance requirements apply. Ask for details.

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

 phone: (502) 905-3708

 Fax:     (502) 327-9119

kentuckyloan@gmail.com

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com/

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KHC Down payment Assistance for Kentucky First time home buyers

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KHC Down payment Assistance for Kentucky First time home buyers


Down payment Assistance Program (DAP)


1. Make sure the property is existing (previously occupied) and below the purchase price
limit of $195,700.  If not, HOME DAP is eliminated.  Proceed to question 3.

2. To ensure HOME DAP eligibility, ensure the following requirements are met:
• Household income below the HOME DAP income limits, available in the MRB
Program Guide, page 10.
• Borrower requires a minimum of $1,000 assistance, up to a max of $4,500, based on
need.  Must use their own liquid funds in excess of two months’ PITI before they
look to HOME DAP.
• Must go maximum allowed LTV on the first mortgage.
• Property must pass HQS inspection (Lead Paint).
• Cannot be used in conjunction with REO properties or FHA 203K streamline
program.
If all of these are met, you must determine how much HOME DAP can be accessed.
This is total cash needed to close, minus seller concessions, minus borrower funds in
excess of two months’ PITI.  Whatever remains, rounded to the nearest $100, is the
HOME DAP loan amount.

3. Does the borrower or property meet one of the three Neighborhood DAP qualifiers?  
• Is the property being purchased as an REO, foreclosure, bank-owned, or
short sale property?
• Has the property been marketed for six months or more?
• Has the borrower experienced a foreclosure, short sale, or deed-in-lieu in the
past and now credit qualifies?
If yes to any of these, the borrower qualifies for the $10,000 Neighborhood DAP.
Funds can be used toward the down payment or for closing costs and prepaids.  Loan is
amortized over 30 years at 1 percent interest rate.  The borrower must qualify with
second mortgage payment.  If not, proceed to Regular DAP in question 4.

4. Borrower is eligible for Regular DAP up to $6,000 in $100 increments with a minimum
$500 loan amount.  Regular DAP is amortized over ten years at 6 percent.  Must go to
maximum LTV allowed on first mortgage amount.  Borrower must qualify with second
mortgage payment.


First Mortgage Quick Reference Card

To successfully originate KHC mortgages, begin with prequalified applicants and
properties that meet FHA, VA, RHS, or Conventional guidelines.  They must be
purchasing or refinancing a single-family, one-unit, owner-occupied property, in
Kentucky.  If so:


1. Make sure the property or refinance is below $243,000.

2. Make sure they meet KHC’s simple credit overlays:

• 640 credit score for FHA, VA, and RHS.
• 680 credit score for Conventional.
• Max ratio caps of 40% / 45%.
• AUS Approval required, except on RHS.

3.Does the borrower require down payment and closing costs assistance with their
FHA, VA, or RHS first mortgage? If yes, proceed to the DAP

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com 

KHC Loan 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.

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.

KHC Loan Programs

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 us ask for a Kentucky Housing loan.



Zero/minimum down payment for mortgage KY



Down Payment and Closing Costs Assistance //



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.

Kentucky First Time Home Buyer (Louisville, Ky)



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