Tuesday, August 20, 2013

$125,000 Neighborhood DAP Down Payment Assistance for Kentucky Mortgage loans Available thru Kentucky Housing Corporation

Effective with reservations on or after Tuesday, August 20, 2013,the Mortgage Revenue Bond (MRB) Special Funding is available to more Kentuckians!  The program is no longer limited to single parents and disabled or elderly persons.  All households below $35,000 gross annual household income, who can demonstrate a need, will qualify for the MRB Special Funding interest rates. See revised guidelines below.

The MRB Special Funding is limited to $15 million and the program is available on a first-come, first-served basis.  The borrower must demonstrate a need based of at least a 25 percent minimum front-end ratio.

Program Guidelines
  • First-time home buyers, unless property is located in a targeted county.
  • Interest rate is fixed at 2.5 percent without Down payment Assistance Program (DAP) or 3.0 percent with DAP.
  • Minimum front-end ratio of at least 25 percent.
  • Maximum ratios 40/45.
  • Executed purchase contract.
  • Existing or new construction property (purchase price limit $115,000).
  • Regular and Affordable DAP available.
  • FHA, VA, and RHS first-mortgage programs.
  • 640 credit score and AUS approval.
  • Gross annual household income limit of $35,000 for all household sizes.
  • All household occupants (18 years and older) with income must be included on loan and be credit ready.
  • Follow the 45-day lock with current reservation extension policy.

$125,000 Neighborhood DAP Available
On a first come, first-served basis, approximately $125,000 is available for Neighborhood DAP.

Eligible Neighborhood DAP Properties/Individuals
  • Property in the process of disposition option (deed-in-lieu, short-sale) or foreclosed.
  • New construction or existing property has been for sale at least six months (For new construction, six months from issue of certificate of occupancy).
  • Ahome buyer who experienced a foreclosure and now credit qualifies to purchase a home.
  • Up to $10,000.
  • Amortized over 30 years at 1 percent interest rate.
  • Purchase price limit of $243,000.
  • Income limits based on funding source (MRB or Secondary)

Interest Rates