Showing posts with label grants. Show all posts
Showing posts with label grants. Show all posts

Kentucky Welcome Home Grant of $20,000 for Kentucky Home Buyers in 2025

 
 A Comprehensive Guide to the Kentucky Welcome Home Grant

Kentucky Welcome Home Grant



For many Kentuckians, the dream of homeownership can feel out of reach due to financial constraints. But thanks to the Kentucky Welcome Home Grant of $20,000 for Kentucky Home Buyers in 2024 that dream might be closer than you think. This grant program, administered by the Federal Home Loan Bank of Cincinnati (FHLBC), offers down payment and closing cost assistance to eligible homebuyers throughout the state.

Whether you're a first-time homeowner or looking to upgrade your living space, understanding the qualifying guidelines is crucial for securing this valuable assistance. Buckle up, folks, as we delve into the details of the Welcome Home Grant and equip you with the knowledge to unlock your Kentucky homeownership dreams!

Eligibility: The First Step on Your Journey

Before diving into the specific details, let's address the first and most important question: are you eligible? Here's a breakdown of the key criteria:

Income: Your total household income must fall at or below 80% of the Mortgage Revenue Bond (MRB) limit for your specific county. These limits vary depending on location, so be sure to check the current limits here at this link below for your desired area.

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Property: The grant applies to primary residences only, including single-family homes, townhomes, condominiums, and qualified manufactured homes. The property must be located within eligible Kentucky counties. You can find a list of participating counties on the FHLBC website.

Purchase Contract: You must have a fully executed purchase contract for an eligible property before applying for the grant.

Financial Contribution: You must contribute at least $500 of your own funds towards the down payment and/or closing costs.

Additional Considerations: While not mandatory, completing a homebuyer education course can strengthen your application. Moreover, veterans and active-duty military personnel may be eligible for higher grant amounts.

Diving Deeper: Grant Details and Amounts

The Welcome Home Grant offers assistance in the form of a non-repayable grant. The maximum grant amount varies depending on several factors:

  • Your down payment: If you contribute more than the required $500 towards your down payment, the grant amount may be reduced to fit within the total program funding available.

Remember: The grant funds cannot be used towards the property purchase price itself. They are strictly for down payment and closing cost assistance.

Finding Your Path: The Application Process

Now that you understand the eligibility and grant details, let's navigate the application process:

  1. Connect with a participating lender: The Welcome Home Grant program operates through partnering lenders, so start by searching for a lender in your area that participates in the program. You can find a list of participating lenders on the FHLBC website or by contacting the organization directly.
  2. Pre-qualify for a mortgage: This shows both you and the lender a realistic picture of your borrowing capacity and strengthens your application.
  3. Gather your documents: Be prepared to provide proof of income, employment, assets, and other required documentation as outlined by your lender.
  4. Complete the grant application: Your chosen lender will walk you through the grant application process and help you submit the necessary paperwork.
  5. Await a decision: The processing time can vary, but you'll typically receive a decision within a few weeks.

Beyond the Guidelines: Valuable Resources and Tips

Remember, knowledge is power! Equip yourself with as much information as possible to ensure a smooth application process. Here are some valuable resources:

Pro-Tip: Start planning early! Research potential properties, understand the market in your desired area, and get your finances in order well before applying for the grant.

Remember: Homeownership is a significant investment, so proceed with careful planning and consideration. Utilize the available resources, ask questions, and don't hesitate to seek professional guidance if needed.

$20,000 Grant Money Available for Kentucky Home Buyers – First-Time Home Buyers Assistance!

Are you a first-time home buyer in Kentucky looking for financial assistance? The Federal Home Loan Bank has created a special fund to help low-to-moderate income families achieve homeownership. This $20,000 grant is designed to assist home buyers with down payments and closing costs, making it easier to secure a home without the burden of large upfront expenses.

Grant Money for First-Time Home Buyers in Kentucky

The Federal Home Loan Bank grant is an excellent opportunity for Kentucky home buyers who meet income requirements. If you're struggling with saving for a down payment or need extra funds for closing costs, this program can help. Funds are limited and will be available starting March 3rd until they are reserved.

Household Income Limits Per County

To qualify for this home buyer grant, your household income must fall within the limits set for your county. Below are the income eligibility requirements for households with 1-2 persons and 3+ persons:

County1-2 Person(s) Income Limit3+ Persons Income Limit
Nelson$73,284$84,277
Washington$73,796$84,866
Larue$74,596$85,786
Hardin$74,596$85,786
Bullitt$77,120$88,688
Marion$68,544$79,968
Jefferson$77,120$88,688
Anderson$73,076$84,038
Franklin$73,588$84,626
Woodford$76,160$87,584
Mercer$73,684$84,737

Other counties  in Kentucky available for eligibility click here .

Who Can Apply for This Home Buyer Grant?

This program is designed for low-to-moderate income households who need financial assistance to purchase a home. It is ideal for first-time home buyers in Kentucky looking for an affordable way to buy a home without high out-of-pocket costs.

Benefits of This Grant for Kentucky Home Buyers

  1. Receive $20,000 in grant money for down payment and closing costs.
  2. Helps first-time home buyers afford a home sooner.
  3. Makes homeownership more accessible for low-to-moderate income families.
  4. Available in multiple counties across Kentucky.

How to Apply for the Kentucky Home Buyer Grant

Funds for this program will be available starting March 3rd and will be distributed on a first-come, first-served basis. If you're interested in applying, it's essential to get pre-qualified as soon as possible.

For more information on qualifying for this first-time home buyer grant in Kentucky, or to start your application, contact Joel Lobb, Senior Loan Officer at American Mortgage Solutions, Inc.

📞 Call/Text: (502) 905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: MyLouisvilleKentuckyMortgage.com

Act Fast – Funds Are Limited!

If you're a first-time home buyer in Kentucky, this $20,000 grant could be the key to owning your dream home. Don't wait until funds run out—start your home buying journey today!


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Kentucky FHA Loan Lender Requirements for Approval

How to Qualify for a Kentucky FHA Loan Approval:

If you're looking to buy a home in Kentucky and are considering a Kentucky FHA loan, it's essential to understand the qualifying criteria and the necessary steps. This article covers all the crucial aspects you need to know, from credit scores, bankruptcy, work history, collections, closing, home insurance, title, debt ratio , down payment and other required documents for pre-approval for a Kentucky FHA loan pre-approval letter.

Credit Score for Kentucky FHA loan

For an FHA loan in Kentucky, the minimum credit score requirement is typically 580 for maximum financing with a 3.5% down payment. If your score is between 500 and 579, you may still qualify, but you will need a higher down payment of at least 10%.

  • Any judgments or collections on the credit report must be resolved or satisfactorily explained. Collections do not have to be paid but they will count them in your debt to income ratio. If they are judgements, they will have to be paid off because they could effect the clear title of the home
  • Cosigners are allowed. Family members or close associates okay. They don't have to live in the home with you. Cosigner are used to for income purposes only or work history that does not meet FHA  lender requirements .Not used to compensate for the primary borrowers bad credit. They always take the lowest credit score of both borrowers. 

Bankruptcy and Foreclosures for Kentucky FHA loans

  • Bankruptcy: You can qualify for an FHA loan two years after a Chapter 7 bankruptcy discharge, provided you have re-established good credit or have not incurred new debt. For a Chapter 13 bankruptcy, you need one year of the payout period completed and permission from the court to enter into a new mortgage.
  • Foreclosures: You must wait three years after a foreclosure before you can qualify for an FHA loan. This period can be reduced if the foreclosure was due to extenuating circumstances beyond your control.

Debt-to-Income Ratio (DTI)

The FHA guidelines typically require a front-end DTI (monthly mortgage payment divided by gross monthly income) of no more than 31% and a back-end DTI (total monthly debt payments divided by gross monthly income) of no more than 43%. However, higher ratios may be accepted with compensating factors, such as significant cash reserves or high credit scores. Can be much higher with AUS approval with 45% and 57% respectively on the front end and back end.

Down Payment for Kentucky FHA loans

The standard down payment for a Kentucky FHA loan is 3.5% of the purchase price, which is feasible for many first-time homebuyers. This down payment can come from savings, a gift from a family member, or an approved down payment assistance program. 10% down payment needed with scores below 580.

Checklist of Documents Needed for Kentucky FHA loan Pre-Approval

To get pre-approved for a Kentucky FHA loan, you'll need to provide several documents, including:

  • Proof of identity (driver’s license or passport)
  • Social Security number
  • Recent pay stubs
  • W-2 forms for the past two years
  • Federal tax returns for the past two years
  • Bank statements for the last two to three months
  • Employment verification letter
  • Debt information (credit cards, student loans, auto loans)
  • Proof of additional income (alimony, child support, bonuses)

Work History for Kentucky FHA loans

You need to show a stable work history for at least the past two years. If you have changed jobs, the new position should be in the same field or demonstrate career advancement.

Loan Limits Kentucky FHA loan

The FHA loan limits in Kentucky vary by county and are set based on the median home prices in the area. In most counties, the limit for a single-family home is $524,225 for a single-family home. in 2024, but this amount can be higher in more expensive areas.

Income Limits Kentucky FHA loan

There are no specific income limits for FHA loans; however, your income must be sufficient to cover the mortgage payments and other debts. Lenders will assess your ability to repay the loan based on your income, debts, and employment history.

Down Payment Assistance Grants Kentucky FHA loan

Kentucky offers several down payment assistance programs to help first-time homebuyers. These programs can provide funds to cover the down payment and closing costs. Some popular programs include:

Seller Concessions for Kentucky FHA loans

Sellers can contribute up to 6% of the home's purchase price toward closing costs, prepaid expenses, discount points, and other financing concessions. This can significantly reduce your out-of-pocket expenses.

Appraisals and Inspections Kentucky FHA loan

  • Appraisals: An FHA-approved appraiser must conduct an appraisal to ensure the property's value and condition meet FHA standards. Always required for FHA approval and ordered by lender.
  • Inspections: While not required by FHA, a home inspection is highly recommended to uncover any potential issues with the property. Not required, and ordered by borrower. Lender never sees the inspection report on home.

Home Insurance for Kentucky FHA loans

Homeowners insurance is mandatory for all FHA loans. You need to secure a policy that covers the property against loss or damage.

Title Report for Kentucky FHA loans

A title report ensures that the property has a clear title with no outstanding liens or claims. This is a crucial step in the home buying process to protect your investment.

Earnest Money Deposit for Kentucky FHA loans

An earnest money deposit is typically required to show the seller that you are serious about purchasing the home. This amount varies but is usually between 1% and 3% of the purchase price. $500 is typical in Kentucky for a deposit on a home you are buying.

Credit Reports for Kentucky FHA loans

Lenders will pull your credit report to assess your creditworthiness. It's important to check your credit report for errors and ensure that all information is accurate before applying for a loan. Some lenders will charge you upfront for the credit report fee and others will pull all three credit reports from Experian, Transunion and Equifax for free. Usually lender will not share the report with you but give you the scores. Scores go from 350 to 850 on each credit bureau.

Time to Close on a Kentucky FHA loan

The time to close an FHA loan can vary but typically ranges from 30 to 45 days. This period can be shorter or longer depending on various factors, including the lender's efficiency and the completeness of your documentation.

Locking in Rate on a Kentucky FHA loan

Once you are approved for a loan, you can lock in your interest rate to protect against rate fluctuations. Rate locks can last from 15 to 180 days or longer, depending on the lender.

CAIVRS Check for FHA loan in Kentucky

The Credit Alert Verification Reporting System (CAIVRS) is used to determine if a borrower has a federal debt or delinquency. If your name appears on this list, you may be ineligible for an FHA loan until the issue is resolved. So if you are delinquent on any student loan debt, back taxes to the IRS or social security overpayments, this can stop your Kentucky FHA loan pre-approval

Student Loan Rules for FHA Kentucky FHA loan

For FHA loans, the monthly payment for student loans is calculated as either .5% of the outstanding balance or the actual documented payment amount, whichever is greater. If your loans are in deferment or forbearance, .5% of the outstanding balance will be used for DTI calculations.

Delinquent Government Debt Kentucky FHA loan

If you have delinquent government debt, such as unpaid federal taxes or a defaulted student loan, you may not qualify for an FHA loan until the debt is resolved.

By understanding these requirements and preparing accordingly, you can increase your chances of qualifying for an FHA loan in Kentucky and successfully purchasing your new home.


1 - 📅 Email - kentuckyloan@gmail.com 
2.  📞 Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans


🌐 Website: www.mylouisvillekentuckymortgage.com
🏢 Address: 911 Barret Ave., Louisville, KY 40204

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.


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