Assumable Mortgage Louisville, KY

Assumable Mortgages are a type of financing arrangement in which the outstanding mortgage and its terms can be transferred from the current owner to a buyer. By assuming the previous owner’s remaining debt, the buyer can avoid having to obtain his or her own mortgage. 

Buyers are typically attracted to homes with existing assumable mortgages during times of rising interest rates. This is because they can assume the seller’s mortgage, which was created when interest rates were lower, and use it to finance their purchase. If the home’s purchase price exceeds the mortgage balance by a significant amount, the buyer will either need to provide a sizable down payment or obtain a new mortgage anyway.

 For example, if a buyer is purchasing a home for $250,000, and the seller’s assumable mortgage only has a balance of $110,000, the buyer would need a down payment of $140,000 to cover the difference, or would have to get a separate mortgage to secure the needed funds.


  • An Kentucky assumable mortgage is an arrangement in which an outstanding mortgage and its terms are transferred from the current owner to a buyer. 
  • When interest rates rise, an assumable mortgage is attractive to a buyer who takes on an existing loan with a lower rate. For example if the current home buyer has a 3% rate, and the current market rate is 7%, the seller of the home can have the buyer assume their mortgage in order to qualify for a lower mortgage payment, but if there is a difference in the sales price and the mortgage amount being assumed, the buyer must come up with the difference hence most of the time this is not a viable option for Kentucky Homebuyers looking to assume a mortgage at a lower rate.
  • Kentucky USDA, FHA, and VA loans are assumable when certain criteria are met. 
  • Buyers must still qualify for the mortgage to assume it.
  • Conventional Loans are not assumable.
Assumable Mortgage Louisville, KY

An assumable mortgage is a type of home loan that allows a new buyer to take over the seller's existing mortgage instead of obtaining a new loan. 

Here are the key points about assumable mortgages:


Transfer of responsibility: 

The buyer assumes the remaining balance, interest rate, repayment term, and other conditions of the seller's mortgage.

Potential benefits:


Buyers may get a lower interest rate than current market rates
Lower closing costs compared to a new mortgage
Simplified process in some cases

Restrictions:


Not all mortgages are assumable
Lender approval is usually required

In regards to the assumption of the mortgage on a borrowers current loan on a house.

This sounds good on paper but in reality it never works.

Below I listed the reasons why assuming someone's mortgage does not work.


Only Certain Loans Are Eligible


Only USDA, FHA, and VA loans are eligible for mortgage assumption. Additionally, sellers may have to jump through a few hoops to release themselves of liability from the loan. This situation makes assumable mortgage loans less appealing to sellers if they have traditional offers on the table.

A Large Down Payment Is Required


The biggest obstacle to assuming a mortgage loan is the large down payment. You can obtain a second mortgage if you do not have the cash to cover the seller’s equity, but this situation can complicate things a bit. Depending on how much equity the seller has, it may be easier and more advantageous for you to obtain a traditional mortgage.


Stringent Approval Process



Assuming a mortgage isn’t a walk in the park. Buyers must provide extensive documentation and undergo a lengthy approval process, often taking up to 90-120 days. This can be cumbersome and time-consuming, potentially delaying the home buying process. Most services of current mortgage loans will not do an assumption due to the low rate.


Seller’s Liability



In a simple assumption, the seller remains liable for the outstanding mortgage debt. If the buyer defaults on payments, both parties’ credit scores are affected. This shared risk can strain the relationship between buyer and seller and lead to financial repercussions for both.



Assumptions are permitted, however they are rarely used as 7 CFR 3555.256(b)(2) requires the transferor to remain personally liable for the debt after the acquisition and assumption (among other requirements) Names cannot be removed from the loan without a refinance of the loan.



Questions about assuming someone's mortgage. Contact me below.


Thanks

Joel Lobb Mortgage Loan Officer NMLS 57916
EVO Mortgage
911 Barret Ave, Louisville, KY 40204
Company NMLS ID # 173846

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

https://lnkd.in/eGz9-TbB
fha assumable homes in louisville

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/


NMLS 57916 


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).


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KENTUCKY VA MORTGAGE QUALIFYING GUIDELINES



 What are Kentucky VA Home Loans?


VA Loans provide military veterans and current service members a distinct advantage when it comes time to purchase or refinance a home. Today's VA Loans have the most favorable terms available for most veterans. VA Loans can be used to purchase a new home with no down payment with no mortgage insurance or refinance up to 90% of homes current equity.



What are the eligibility requirements for a VA Loan in Kentucky?


Veterans Affairs loan guidelines use two methods of income qualification in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). 

Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. Most lenders will require at least a 580 to 620 credit score for a VA Loan approval. Keep in mind, VA guidelines do not call for a credit score but most lenders institute minimum credit score overlay to protect from buybacks from VA loans if they have too many go into foreclosure



How much can I borrow?


The maximum Kentucky VA Mortgage amount is determined by:

Maximum VA Loan in Kentucky: The largest loan allowed for VA mortgages with zero down is now based on your VA loan entitlement in KY. Please refer to the Kentucky VA Loan Limit chart at the bottom of this page to see your area's limit.

Maximum Finance: For purchase transactions, the Maximum VA Loan will be 100% of the lower of the selling price or the appraised value.



What will the down payment and closing costs be?


No down payment required and closing costs vary from lender to lender and usually is based upon the loan amount, credit score, time to close (lock period) and whether or not you get a par rate or a higher rate with a lender credit to pay some of your closing costs at closing.



What property types are allowed for VA Loans in Kentucky?


VA Loans may be used to purchase or refinance single-family residences and VA approved condo projects if the property is the veteran's primary residence.

Can I do a VA refinance in Kentucky?


Three kinds of VA Refinance programs are available for veterans in Kentucky.


Rate/Term VA Refinance

The Rate/Term VA Refinance can be used to refinance a conventional, FHA or subprime mortgage into a stable, fixed rate VA Loan.


VA Cash-Out Refinance

A Cash-Out VA Refinance is very beneficial for the veteran who wants to access the equity that they have built up in their home. VA Loans can be used to refinance up to 90% of a home's current value and take cash out for any reason.


Streamline Refinance

The VA Streamline Refinance is designed to lower the interest rate on a current VA mortgage or convert a current VA adjustable-rate mortgage into a fixed rate. A VA Streamline Refinance Loan can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.


How much can I refinance in Kentucky?


The maximum amount for an KY VA loan is determined by:


Maximum VA Loan in Kentucky: The largest loan allowed for a VA Mortgage varies from county to county. To see what the limit is in the county in which you're interested, visit the following page


https://www.benefits.va.gov/HOMELOANS/purchaseco_loan_limits.asp.


This site lists U.S. territories as well as states.


Maximum Finance: In Kentucky, the maximum VA refinance loan amount will be 100% of the appraised value of the home for a rate/term refinance or 100% of the appraised value for a VA cash out refinance.

What factors determine if I am eligible for a VA Refinance Loan?


VA refinance loans use two methods for income qualification purposes in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, 

VA loans use a debt-to-income ratio (DTI). Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. 

Most lenders will require at least a 580-credit score for a VA Loan approval even though VA does not have a minimum credit score.

Joel Lobb
Senior Loan Officer
(NMLS#57916

text or call my phone: (502) 905-3708

email me at kentuckyloan@gmail.com
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). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.
CREDIT SCORE REQUIRED TO BUY A HOUSE IN KENTUCKY by joel lobb
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How to Get Approved for a Kentucky Mortgage Loan with Bad Credit.


Buying a home in Kentucky with bad credit can be done with the right mortgage loan officer to guide you through the process.

 There are various loan programs, including Kentucky FHA, VA, USDA, and conventional mortgages, have different criteria and offer opportunities for individuals with less-than-perfect credit to become homeowners. 

In this blog post, we'll explore the options available for Kentucky homebuyers with bad credit and provide tips on improving your credit scores to enhance your chances of loan approval to buy your first house in Kentucky

Understanding Your Credit Score or Fico Score 

Your credit score is a critical factor in determining your eligibility for a mortgage loan. It reflects your creditworthiness and helps lenders assess the risk of lending you money.

Credit scores range from 300 to 850, with higher scores indicating better credit health. Scores below 620 are generally considered "bad" credit, but don't be discouraged. There are still options available.


Loan Options for Kentucky Homebuyers with Bad Credit

Kentucky FHA Loans

Federal Housing Administration (FHA) loans are popular among Kentucky first-time homebuyers and those with bad credit. They offer more lenient credit requirements and lower down payment options.

  • Credit Score Requirement: As low as 500 with a 10% down payment, or 580 with a 3.5% down payment.
  • Benefits: Flexible credit requirements, low down payment, and competitive interest rates.
  • Drawbacks: Mortgage insurance premiums (MIP) are required, which increase the overall cost of the loan. A lot of sellers view FHA buyers as weaker buyers vs Conventional loans and may hold that against you if you are making an offer with a FHA loan. 
  • Bankruptcy: 2 years removed from Chapter 7 and 1 year in Chapter 13 pan with on time pay history and trustee approval is possible for FHA loans

Kentucky VA Loans

Veterans Affairs (VA) loans are available to veterans, active-duty service members, and eligible surviving spouses. These loans offer significant benefits, including no down payment and no private mortgage insurance (PMI).

  • Credit Score Requirement: No official minimum, but most lenders prefer a score of at least 580 to 620.
  • Benefits: No down payment, no PMI, competitive interest rates.
  • Drawbacks: VA funding fee, which can be financed into the loan or waived for some eligible veterans. 
  • Bankruptcy: 2 years removed from Chapter 7 and 1 year in Chapter 13 pan with on time pay history and trustee approval is possible for FHA loans

Kentucky USDA Loans

The United States Department of Agriculture (USDA) loans are designed for rural and suburban homebuyers with low to moderate incomes. These loans offer zero down payment options and low-interest rates.

  • Credit Score Requirement: Generally, 640, but exceptions can be made for lower scores with compensating factors down to a 580 credit score. 
  • Benefits: No down payment, low mortgage insurance, competitive interest rates.
  • Drawbacks: Geographic and income restrictions apply and harder to qualify for vs FHA loans and VA loans when it comes to government backedmortgae loans. Much more restrictive on debt to income ratio and income limits for household see here 

Kentucky Conventional Mortgage Loans

Conventional loans are not backed by the government and typically require higher credit scores. However, there are programs available for those with lower scores.

  • Credit Score Requirement: Generally, at least 620. Typically 720 or higher preferred--
  • Benefits: Potentially lower overall costs compared to government-backed loans if you have a higher credit score and substantial down payment. No maximum purchase price or loan amount-Mortgage insurance not for life of loan and can recast your mortgage loan and remove mi unlike government backed loans via FHA, VA USDA ---Can be done anywhere and no income limits
  • Drawbacks: Stricter credit requirements, higher down payments, and PMI required for down payments less than 20%. 




Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916




Text/call:      502-905-3708

email:          kentuckyloan@gmail.com




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#57916 http://www.nmlsconsumeraccess.org/
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$10,000 Down Payment assistance from Kentucky Housing



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

Regular DAP

  • Purchase price up to $510,939 with Secondary Market​ or Mortgage Revenue Bond (MRB) income limits.
  • Assistance in the form of a loan up to $10,000 in $100 increments.
  • Repayable over a 10-year term at 3.75 percent.
  • Available to all KHC first-mortgage loan recipients.

​​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.​

​Secondary Market Eligibility

To qualify for a Secondary Market KHC loan, you must meet the following requirements:

  • Meet Secondary Mark​et Income​ Limits for your county.
  • Be a U.S. citizen, other national or qualified alien person
  • Have a minimum credit score of 620.
  • Be a first-time or repeat homebuyer.

Property Eligibility

The home you wish to purchase must meet the following guidelines.

  • Borrower must occupy the home within 60 days of closing and for duration of loan.
  • New or previously occupied detached, single-family home.
  • New or previously occupied condominium, townhouse, or attached unit in a planned unit development.
    • Check with lender for eligible condominiums.
  • New or previously occupied manufactured housing, single or double wide, permanently affixed to the foundation and taxed as real estate
    • ​Must meet loan type's foundation requirements.
  • ​The property purchased must be in Kentucky.​



Conventional Preferred Program
Conventional Preferred Plus 80
FHA
VA







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#57916 http://www.nmlsconsumeraccess.org/


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Can you use Foster Income for a Kentucky Mortgage Loan Approval?

 Foster Income for a Kentucky Mortgage 



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.


Foster Income for a Kentucky Mortgage






Joel Lobb (NMLS#57916)
Senior  Loan Officer



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/

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How to Qualify For A Kentucky Mortgage Loan




Joel Lobb  Mortgage Loan Officer NMLS 57916

EVO Mortgage
 911 Barret Ave, Louisville, KY 40204
Company NMLS ID # 173846

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | Company NMLS #173846
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).

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How To Buy A House In Kentucky With Zero Down Payment!

 

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.

Kentucky Housing Corporation (KHC) Programs

KHC FHA Loan

The Kentucky Housing Corporation offers down payment assistance programs that work in conjunction with Kentucky FHA loans. These programs aim to help first-time homebuyers achieve homeownership with minimal upfront costs.

Qualifying Criteria:

  • Credit Score: Minimum 620
  • KHC Income Limits: Varies by county and household size
  • 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
  • Work History: Stable employment history required
  • Assets: Applicants must meet asset limitations
  • Loan limits changes every year.

Kentucky FHA Loans

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.

Qualifying Criteria:

  • Credit Score: Minimum 580 (with 3.5% down payment), 500-579 (with 10% down payment)
  • Income Limits: None, but debt-to-income ratio must be manageable
  • Work History: Steady employment for at least two years
  • Assets: Must demonstrate sufficient assets to cover closing costs and reserves
  • Loan limits for FHA loans. Changes every year

Kentucky VA Loans

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
  • Max VA loan limits changes every year.

Kentucky USDA Loans

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
  • Income Limits: Varies by county and household size--
  • Work History: Stable employment for at least two years
  • Assets: Limited to ensure assistance goes to those in need-
  • No purchase price or loan limits, just income limits for each Kentucky County.
  • Max income limits changes every year
  • Debt to income rate usually around 31% on front end and 45% max on back-end ratio ...
  • Has to be run through GUS, the Guarantee Underwriting system for initial pre-approval

$15,000 Welcome Home Grant

United Wholesale Mortgage (UWM) offers a $15,000 Welcome Home Grant to help eligible homebuyers with down payment and closing costs.

Qualifying Criteria:

  • How does the $15,000 Down Payment Assistance work in Kentucky for Homebuyers
    • First  mortgage meets Loan to Value requirements for Fannie Mae or Freddie Mac ltv
    • Mortgage lenders in Kentucky  provides a second lien mortgage for 3% of the purchase price, up to $15,000
    • Second lien has no monthly payment requirement and no interest-no payments to lender
    • Second lien balance is due when the first lien loan is refinanced or paid off, whichever comes first
    • Payments on the second lien can be made throughout the loan term, but are not required

    How Kentucky borrowers can qualify for the $15,000 Down Payment Assistance:

    • 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
      •  

$25,000 Kentucky Welcome Home Grant

The $25,000 Kentucky Welcome Home Grant is designed to provide substantial assistance to homebuyers for down payment and closing costs.

Qualifying Criteria:

  • All Kentucky first-time homebuyers must complete a homebuyer counseling program (but you don’t have to be a first-time homebuyer to participate).
  • Homebuyers must contribute at least $500 of their own funds toward down payment and closing costs (60% of these funds may be received as a gift).
  • All funds are reserved for specific homebuyers purchasing specific homes and can not be transferred to other homebuyers or to other homes.
  • Kentucky Welcome Home Grant Funds can be used with Kentucky FHA, USDA, VA, Home Ready, and other Conventional products.
  • Homebuyers must remain in the home for 5 years or prorated repayment of the grant may be required.
  • More information from the Federal Home Loan Bank of Cincinnati can be found at https://www.fhlbcin.com/housing-programs/welcome-home-program/.
  •  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. ☹

5% Kentucky Home Buyer Grant

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!

    Key Benefits

    • Utilize with either Kentucky FHA or Kentucky USDA loan to purchase a home
    • 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.

 

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Text/call: 502-905-3708


email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/

 
NMLS 57916  | Company NMLS 1738641
 

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).

 
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