Kentucky Housing Income Limits for Mortgage Loans

New Income Limits for KHC Loans in Kentucky

New Income and Purchase Price Limits for Secondary Market and Mortgage Revenue Bond KHC’s eliminated the front-end ratio of 40%, effective with new reservations on Monday, June 24, 2024.

Eligibility: Both first-time and repeat home buyers purchasing a single-family dwelling. Purchase price can be no more than $510,939.

 Applicant’s income must be within applicable secondary market limits in effect.

Federal Housing Administration (FHA)

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Minimum 620 credit score.

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Financing to 96.50% of lesser of sales price or appraised value.

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Maximum ratio 50%.

Upfront and Annual Mortgage Insurance Premiums 30-Year Loan Term LTV less than or equal to 95% 1.75% UFMIP .50 Annual LTV greater than 95% 1.75% UFMIP .55 Annual

Rural Housing Services (RHS)

Minimum 620 credit score.

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Financing to 100% of the appraised value, plus guarantee fee of 1.00%/0.35% annual fee.

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Maximum ratio 50%.

Veteran’s Administration (VA)

Minimum 620 credit score.

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Financing to 100% of the lesser of the appraised value or sale price plus funding fee.

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Maximum ratio 50%.

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No monthly mortgage insurance.

Regular Down Payment Assistance Programs (DAP) 

Only home buyers obtaining a Kentucky Housing Corporation first mortgage are eligible for DAP funds. Interest Rate with DAP applicable. 

 Up to $10,000 Minimum of $1,000 

Terms 3.75% amortized over 10 years Purchase Price Limit $510,939

With AUS approval, can go up to 50% with all loans.

 Required Repairs Buyer or seller must use OWN funds to pay for repairs

Joel Lobb  Mortgage Loan Officer

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).

KHC or Kentucky Housing for Down Payment Assistance for Ky First Time Home Buyers

Down Payment Assistance for Ky First Time Home Buyers

Kentucky Down payment assistance loans are available up to $6,000 for Mortgage

KHC is used for mostly applicants in Kentucky that don't have access to money for a down payment on their home. 

Down payment assistance loans are available up to $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% based on applicants gross income.


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 recognizes that down payments, closing costs, and prep​aids 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 need.

Regular DAP

• Purchase price up to $346,644 with Secondary Market.
• Assistance in the form of a loan up to $6,000 in $100 increments.
• Repayable over a ten-year term at 5.50 percent.
• Available to all KHC first-mortgage loan recipients.

Affordable DAP

• Purchase price up to $346,644​ with Secondary Market.
• Assistance up to $6,000.
• Repayable over a ten-year term at 1.00 percent.
• Borrowers must meet Affordable D​AP income limits.

​MORE ABOUT DOWN PAYMENT AND CLOSING COSTS

• No liquid asset review and no limit on borrower reserves.
• Specific credit underwriting standards may apply to down payment programs
• KHC ELIGIBILITY AND CREDIT STANDARDS OVERVIEW
• (Not intended to be an all-inclusive list.)
• Home Buyer Eligibility
• • KHC can help both first time and repeat home buyers statewide.
• • Must be a U.S. citizen or legal status to be in U.S.
• • Applicant’s income ONLY through Secondary Market.
• • Property must be the borrower’s principal residence.
• • Any Borrower that meets both the income and purchase price limit can have access to Down Payment Assistance.
• Kentucky Housing Credit Standards
• • 620 minimum credit score required for FHA, VA, & RHS.
• • 660 minimum credit score required for Conventional.
• • Debt ratios: 40/50%
• • Collections in most cases do not need to be paid-off in full.
• • Bankruptcies and foreclosures must be discharged two to seven years.
• • Non-taxable income can be grossed-up.
• Property Eligibility
• • Both new and existing property.
• • Both new & existing Manufactured Housing.
• • With RHS only new construction Manufactured housing is allowed.
• • Purchase price limit of $346,644 for Secondary Market or $311,997 for Tax Credit.
• • Full appraisal required on all KHC loans.
• • With Existing Property, VA is the only loan product that requires a termite inspection.
• • A termite soil treatment certificate is required on ALL new construction properties except on conventional loans.