Wednesday, March 20, 2013

Kentucky Housing Corporations Down Payment And Closing Costs Assistance






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.

Neighborhood Down payment Assistance Program (DAP) 

Kentucky Housing Corporation (KHC) received $3 million from the National Mortgage Foreclosure Settlement Fund to offer a new mortgage program for down payment and closing costs assistance. This program is only available until all funds are gone.
Repayable second mortgage up to $10,000
  • 1 percent interest rate for 30 years.
  • Income must be less than $124,775 (terms and conditions apply).
To be eligible for the Neighborhood DAP, either:
  • The property must be in the process of disposition option (i.e., deed-in-lieu, short sale) or foreclosed upon.
  • The newly-constructed or existing property has been for sale for at least six months.
  • The home buyer has experienced a foreclosure and credit qualifies to purchase another home.

Regular DAP

  • Purchase price up to $243,000.
  • Assistance in the form of a loan up to $6,000 in $100 increments.
  • Repayable over a ten-year term at 6 percent.  A DAP of $6,000 over ten years at 6 percent interest would equal a payment of $66.61.
  • Available to all KHC first-mortgage loan recipients.

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.

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.

Eligibility

Bookmark and Share

MRB Eligibility

To qualify for a MRB KHC loan, you must meet the following requirements:
  • Annual household income must fall within the MRB income limitations for your county and family size.
  • Be a U.S. citizen, other national or qualified alien person.
  • Have the ability to provide a down payment or qualify for down payment assistance.
  • Have an acceptable credit history.
  • Can be a first-time buyer or repeat homeowner (if the property is located in a Targeted County).

Secondary Market Eligibility

To qualify for a Secondary Market KHC loan, you must meet the following requirements:
  • Meet GNMA income limits for your county.
  • Be a U.S. citizen, other national or qualified alien person.
  • Have the ability to provide a down payment or qualify for down payment assistance.
  • Have an acceptable credit history.
  • Can be a first-time buyer or repeat homeowner.
Property - for both MRB and Secondary Market Loan Programs
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).
  • One-acre maximum on lot size unless acreage waiver is obtained. (MRB Only)

Purchase Price Limitations

MRB and Secondary Market First Mortgage Programs

New and Existing Homes.............................................. $243,000   

MRB and Secondary Market First Mortgage Programs When Utilizing ANY Form of HOME DAP

Existing Homes ONLY................................................... $195,700   


http://mylouisvillekentuckymortgage.com/


KHC Loan Programs


MRB

  • All MRB 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 MRB income guidelines, make a down payment or qualify for down payment assistance, be a U.S. citizen or legal alien and have an acceptable credit history.
  • Some MRB KHC 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

  • Minimum credit score of 680 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.
  • Upfront and monthly mortgage insurance.
  • Minimum credit score of 640.

Secondary Market

  • All Secondary Market first mortgage loans are for a 30-year term at a fixed rate of interest.
  • The home you purchase through KHC must be occupied as your principle residence while the loan debt is outstanding.
  • To qualify, you must meet KHC's GNMA income guidelines, make a down payment, or qualify for down payment assistance, be a U.S. citizen or legal alien and have an acceptable credit history.

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.
  • Upfront and monthly mortgage insurance
  • Minimum credit score of 640.
Two FHA Refinance Options
  • Credit qualifying Streamline Refinance and Rate/Term Refinance
    • Insured by the Federal Housing Administration
    • Cash back to borrower not to exceed $500
    • Upfront and monthly mortgage insurance
    • Minimum credit score of 640