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
KHC recognizes that down payments, closing costs, and prepaids are stumbling blocks for many potential home buyers. We offer a special loan program to help with those. Your KHC-approved lender can help you apply.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
A Comprehensive Guide to the 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.
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 military status: Veterans and active-duty military personnel are eligible for up to $25,000, while all other eligible homebuyers can receive up to $20,000.
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:
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.
Pre-qualify for a mortgage: This shows both you and the lender a realistic picture of your borrowing capacity and strengthens your application.
Gather your documents: Be prepared to provide proof of income, employment, assets, and other required documentation as outlined by your lender.
Complete the grant application: Your chosen lender will walk you through the grant application process and help you submit the necessary paperwork.
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:
Your chosen participating lender: Their expertise can be invaluable in navigating the application process and maximizing your chances of success.
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.
Important Dates to Remember:
Application Period: Reservations for the 2024 Welcome Home Grant program open on March 1st, 2024, at 8:00 AM ET.
Funding Availability: Grants are limited and awarded on a first-come, first-served basis.
Program Duration: The program runs until all funds are reserved.
Must have contract under agreement to submit for funds.
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).
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
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).
Yes, if it can be documented that foster care income has been received for the last 2 years that income is likely to continue for at least 3 years from the date of the Note, then it can be used to qualify.
If it can be verified that income is not taxable, it can be grossed up per 4000.1 II.A.4.c.xii.(P) or II.A.5.b.xii.(P) by either borrower's actual tax rate or 115% whichever is lower.
Yes, we need to show 24 months receipt of this income, possible exception if only received for 12 months, and we would need something from the agency showing this will continue for 3 years.
Foster-Care Income for a Mortgage Loan Approval
What are the guidelines?
Income received from a state- or county-sponsored organization for providing temporary care for one or more children may be considered acceptable stable income if the following requirements are met.
✓
Verification of Foster-Care Income
Verify the foster-care income with letters of verification from the organizations providing the income.
Document that the borrower has a two-year history of providing foster-care services. If the borrower has not been receiving this type of income for two full years, the income may still be counted as stable income if
the borrower has at least a 12-month history of providing foster-care services, and
the income does not represent more than 30% of the total gross income that is used to qualify for the mortgage loan.
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
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).
There are several programs in Kentucky to help homebuyers purchase a house with zero down payment. The various Kentucky down payment assistance programs in Kentucky, including KHC, FHA, VA, USDA, UWM's $15,000 Welcome Home Grant, the $25,000 Kentucky Welcome Home Grant, and the 5% grant. We will also detail the qualifying criteria, such as credit score, income, work history, and assets.
Work History: Steady employment for at least two years
Assets: Limited to ensure assistance goes to those in need
Minimum down payment of 3.5% and 6% seller concessions
Max debt to income ratios of 40 and 50% respectively
KHC Down Payment Assistance Programs
KHC offers several down payment assistance options, including a regular DPA loan of up to $10,000. These loans are repayable over ten years at 3.75% over 10 years and cannot be subordinated and paid off if you refinance or sell the home before they are paid off. No prepay penalty
Qualifying Criteria:
KHC Credit Score: Minimum 620
Income Limits: Varies by county and household size
Kentucky FHA loans are insured by the Federal Housing Administration and require a lower down payment of 3.5, but when paired with down payment assistance programs, Kentucky homebuyers can potentially buy a home with zero down payment.
Kentucky VA loans are guaranteed by the Department of Veterans Affairs and are available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. These loans often come with zero down payment requirements.
Qualifying Criteria:
Credit Score: No minimum, but most lenders prefer at least 580 to 620
Income Limits: None, but borrowers must have stable income
Work History: Typically, two years of consistent employment
Assets: Sufficient to cover closing costs; no down payment required
Residual Income Requirements
Debt ratio set by VA...No max debt ratio, but most like to see a 43% backend ratio on a manual underwrite but can go higher on an AUS automated underwriting approval through DO or LP
Kentucky USDA loans are backed by the U.S. Department of Agriculture and are available to Kentucky homebuyers in eligible rural areas of Kentucky. These loans offer 100% financing. $0 down payment
Qualifying Criteria:
Credit Score: No minimum score but most KY Rural Housing Lenders will a 620 to 640 minimum credit score
Kentucky Borrowers must be at or below 80% of the Area Median Income (AMI) for the Kentucky mortgage property address they are buying and meet Home Possible® guideline requirements
For very-low income borrowers whose qualifying income is at or below 50% AMI (VLIP borrowers), they will receive a $2,500 credit as part of the 3% assistance
This credit does not need to be repaid by the borrower and lowers their debt obligation from the second lien
620+ FICO and LTV must be equal to or greater than 95% LTV, up to 97%
—OR—
At least one Kentucky home mortgage borrower must be a first-time homebuyer and meet HomeOne® and lender’s guideline requirements
Kentucky Welcome Home Grant program, providing eligible homebuyers with grants of up to $25,000. The program, offered by the Federal Home Loan Bank of Cincinnati (FHLB Cincinnati), aims to support honorably discharged veterans, surviving spouses, and active-duty military personnel, along with other qualified home seekers.
Funds are available starting March 1 at 8am ET, and are available until all funds have been reserved. The FHLB Cincinnati not only assists service personnel with up to $25,000 grants but also extends up to $20,000 grants to other qualified homebuyers.
To learn more about the application process and eligibility criteria, visit www.fhlbcin.com.
Don't miss out on this incredible opportunity! Contact us at phone or text at 502-905-3708
Act fast, as funds are limited!---As of 5/22/2024 Funds for Welcome Home Grant in Kentucky has been depleted. ☹
Some lenders in Kentucky offer a 5% grant program that provides assistance based on the purchase price of the home. This grant can be used for down payment and closing costs.
Qualifying Criteria:
Down payment assistance products to help Kentucky home buyers purchase the home of their dreams!
Up to 5% of purchase price can be used towards borrower’s down payment, closing costs, or to lower rate on the underlying mortgage.
Fully forgivable or repayable options
No income or first-time homebuyer restrictions
SmartBuy Down Payment Assistance 5 Year Forgivable DPA 30/10 Repayable DPA Closing Cost Assistance – Repayable
Down payment assistance (DPA) program requiring the delivery of the underlying 30 year FHA or USDA loan with the subordinated second lien. The second lien is fully forgiven after 5 years if the borrower meets criteria.
Down payment assistance (DPA) program with a repayable second lien. The second is not forgivable and is originated with a 30 year term due in 10 year balloon.
Closing cost assistance (CCA) program with a repayable second lien. The second is not forgivable and is originated with a 30 year term due in 10 year balloon.
Borrower Eligibility Based on FHA or USDA program guidelines (USDA Not required to be first-time homebuyers No income restrictors beyond USDA guidelines
Credit Score Minimum Representative Score of 620 All Borrowers must have at least one score
Navigating the various down payment assistance programs available to Kentucky homebuyers can be complex, but with the right information, you can find the program that best fits your needs.
Whether you are a Kentucky first-time homebuyer or a veteran, these programs can help you achieve the dream of homeownership with little to no down payment. Be sure to review the specific qualifying criteria for each program and consult with a knowledgeable mortgage broker, such as Joel Lobb, to guide you through the process and help you secure the best assistance available.
If you have any questions or need further assistance, feel free to contact Joel Lobb at email or visit his website for more information.
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).
