Down Payment Assistance Kentucky First Time Homebuyer Program

DPA_Email Header.png
KENTUCKY HOUSING DOWN PAYMENT ASSISTANCE $4500 TO $6000
 

 
Kentucky  Down Payment Assistance can now be provided to Kentucky First Time Home Buyers

Regular DAP

  • Purchase price up to $282,000 with Secondary Market or $253,800 with MRB.
  • Assistance in the form of a loan up to $6,000 in $100 increments.
  • Repayable over a ten-year term at 5.50 percent. A DAP of $6,000 over ten years at 5.50 percent interest would equal a payment of $65.12.
  • Available to all KHC first-mortgage loan recipients.

Affordable DAP

  • Purchase price up to $282,000 with Secondary Market or $253,800 with MRB.
  • Assistance up to $4,500.
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable DAP income limits.

 

  Down Payment Assistance Guidelines for Kentucky First Time Buyers
  • Minimum 620  FICO Score
  • 1 unit SFR, PUD or Condo and FHA Approved Manufactured homes
  • 30 yr / 15 yr fixed rate mortgage loans for KY Home buyers
  • FHA, VA, Conventional Conforming, Home Possible Advantage® and HomeReady® products eligible up to 125% CLTV
  • Purchases only loans
  • Community Seconds
  • Government, county, city or town sponsored programs only
  • No Bankruptcies last two years
  • Do not have to be a first time home buyer. Just cannot currently own another home to use the down payment assistance.

dap• Debt ratios:
29/41% for RHS, but with GUS approval, can
go up to 40/45%.
FHA and VA = 40/45% with AUS Approval
Conventional – 40/50% with DU Approval
• Collections in most cases do not need to be
paid-off in full.
• Bankruptcies and foreclosures must be
discharged two to seven years.
• Non-taxable income can be grossed-up per
insuring agency guidelines
Property Eligibility

• Purchase price limit of $282,000 for
Secondary Market or $253,900 for MRB
Loans.
• Full appraisal required on all KHC loans.
• With Existing Property, VA is the only loan
product that requires a termite inspection.
• A termite soil treatment certificate is required
on ALL new construction properties except
on conventional loans

 

unnamed-2http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu

 

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
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/
 
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

 

 

Kentucky First Time Home Buyer Programs for 2017

 Inline image 1

Myth 1: You need a big down payment to buy a home

According to the survey, the average American believes that 17% of the purchase price is the minimum down payment required to buy a home. Millennials have an even more pessimistic view – they think that a 21% down payment is required.

It’s true that a 20% down payment is the mortgage industry standard, but it is by no means a minimum requirement. A conventional mortgage can be obtained with a down payment of as little as 3% by creditworthy borrowers, and even lower-credit applicants can obtain an FHA mortgagewith a down payment as low as 3.5%.

Even better, Veterans and buyers of certain rural homes can potentially qualify for no-money-down financing through the VA and USDA loan programs, respectively. Some individual lenders offer 100% financing programs as well that anyone can take advantage of, so it could be a good idea to visit a few banks in your area to see what’s available.

Myth 2: You need excellent credit to get approved for a mortgage

Seventeen percent of all adults and 22% of millennials say that credit is an obstacle standing in the way of becoming a homeowner. And it’s true that a high credit score certainly helps your chances of approval and can get you a lower interest rate.

In reality, however, relatively few potential homebuyers can’t buy a house because of credit issues alone. The median FICO credit score in the U.S. is 700, while the minimum credit score necessary for a conventional mortgage is just 620. An FHA loan with 3.5% down requires a FICO score of 580, and with a 10% down payment, it’s possible to get an FHA loan with a score of as little as 500.

According to FICO’s latest score distribution data, 70% of the population has a FICO score of 650 or above, and 80% are above 600. Just 4.7% of the population have a FICO score under 500.

To be clear, borderline credit combined with other issues, such as little money in savings, unstable income, or lots of debt can be a reason for mortgage rejection. But for most people, credit alone is not a major obstacle.

 

Kentucky First Time Home Buyer Programs for 2017

Conventional Loan

• At least 3%-5% down

• Closing costs will vary on which rate you choose and the lender. Typically the higher the rate, the lesser closing costs due to the lender giving you a lender credit back at closing for over par pricing. Also, called a no closing costs option. You have to weigh the pros and cons to see if it makes sense to forgo the lower rate and lower monthly payment for the higher rate and less closing costs.

Fico scores needed start at 620, but most conventional lenders will want a higher score to qualify for the 3-5% minimum down payment requirements Most buyers using this loan have high credit scores (over 720) and at least 5% down.

The rates are a little higher compared to FHA, VA, or USDA loan but the mortgage insurance is not for life of a loan and can be rolled off when you reach 80% equity position in the home.

Conventional loans require 4-7 years removed from Bankruptcy and foreclosure.

Max Conventional loan limits are set at $424,00 for 2017 in Kentucky

Kentucky USDA Rural Housing Program

If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.

Fico scores usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.

They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income.

They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in a rural area.

A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern Kentucky.

There is a map link below to see the qualifying areas.

There is also a max household income limits with most cutoff starting at $76,000 for a family of four, and up to $98,000 for a family of five or more.

USDA requires 3 years removed from bankruptcy and foreclosure.

There is no max USDA loan limit.

Kentucky FHA Loan

FHA loans are good for home buyers with lower credit scores and no much down, or with down payment assistance grants. FHA will allow for grants, gifts, for their 3.5% minimum investment and will go down to a 580 credit score.

The current mortgage insurance requirements are kinda steep when compared to USDA, VA , but the rates are usually good so it can counteract the high mi premiums. As I tell borrowers, you will not have the loan for 30 years, so don’t worry too much about the mi premiums.

The mi premiums are for life of loan like USDA.

FHA requires 2 years removed from bankruptcy and 3 years removed from foreclosure.

Maximum FHA loan limits in Kentucky are set around $285,000 and below.

Kentucky VA Loan

VA loans are for veterans and active duty military personnel. The loan requires no down payment and no monthly mi premiums, saving you on the monthly payment. It does have a funding fee like USDA, but it is higher starting at 2% for first-time use, and 3% for second-time use. The funding fee is financed into the loan, so it is not something you have to pay upfront out of pocket.

VA loans can be made anywhere, unlike the USDA restrictions, and there is no income household limit and the max loan is $417,000 in Kentucky

Most VA lenders I work with will want a 620 credit score.

VA requires 2 years removed from bankruptcy or foreclosure.

Kentucky Down Payment Assistance

This type of loan is administered by KHC in the state of Kentucky. They typically have $4500 to $6000 down payment assistance year around, that is in the form of a second mortgage that you pay back over 10 years.

Joel Lobb
Senior Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
10602 Timberwood Circle, Suite 3
Louisville, KY 40223

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.

Joel E Lobb
American Mortgage
5029053708
email us here

Kentucky FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans.

Kentucky Housing Home Buyers

To Our Kentucky Housing Home Buyers looking for foreclosed properties

 

We are pleased to provide you with information about Kentucky Housing Corporation’s (KHC) master commissioner sales. These sales typically take place at the county courthouse where the property is located. The listings are arranged by county, according to the county in which the property is located.

 

.

BARREN
117 FORRESTER ROAD 9/26/2017
GLASGOW, KY 42141
BOONE
7181 HIGHPOINT DR 9/21/2017
FLORENCE, KY 41042
1150 MACINTOSH LANE 9/28/2017
FLORENCE, KY 41042
CHRISTIAN
3449 WILLIAM CT 9/18/2017
HOPKINSVILLE, KY 42240
FAYETTE
3941 NORTHAMPTON DRIVE 9/18/2017
LEXINGTON, KY 40517
FRANKLIN
338 SENATE DRIVE 9/25/2017
FRANKFORT, KY 40601
GREENUP
119 ETNA STREET 9/25/2017
RUSSELL, KY 41169
JEFFERSON
314 DOWNES LANE 9/15/2017
LOUISVILLE, KY 40214
1602 HASKIN AVE 9/15/2017
LOUISVILLE, KY 40215
4000 SUNFLOWER AVE 9/15/2017
LOUISVILLE, KY 40216
5069 POPLAR LEVEL ROAD 9/15/2017
LOUISVILLE, KY 40219
4928 WELLSWORTH AVENUE 9/29/2017
LOUISVILLE, KY 40216
1308 DONARD PARK AVE 9/29/2017
LOUISVILLE, KY 40218
7007 MATTHEWS RD 10/6/2017
LOUISVILLE, KY 40258
6001 ALANADALE DRIVE 10/6/2017
LOUISVILLE, KY 40272
1347 VIM DRIVE 10/20/2017
LOUISVILLE, KY 40213
6211 MARAVIAN DRIVE 10/20/2017
LOUISVILLE, KY 40258
LAUREL
6401 MOUNT ZION ROAD 10/13/2017
EAST BERNSTADT, KY 40729
MADISON
107 VALLEY ST 9/27/2017
RICHMOND, KY 40475
2379 COLLEGE HILL RD 9/27/2017
WACO, KY 40385
SHELBY
1701 CHERRY LANE 9/28/2017
SHELBYVILLE, KY 40065
 
What are the Kentucky USDA Mortgage Loan Requirements?
To decide if you qualify for an USDA Mortgage Loan, we will look at:
•Your income and your monthly expenses. Standard debt-to-income ratios are 29/41 for USDA Loans. These ratios may be exceeded with compensation factors.
•Your credit history (this is important, but USDA’s credit standards are flexible). A FICO score of 620 or above is required for all loans
•Your overall pattern rather than to individual problems you may have had.
To be eligible for an USDA mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an USDA approval through Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These percentages may be exceeded with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.
Can I get an USDA Mortgage Loan after bankruptcy?
Criteria for USDA loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for three years or more, you are eligible to apply for an USDA mortgage. If you are in a Chapter 13 bankruptcy and have made all court approved payments on time and as agreed for at least one year, you are also eligible to make an Kentucky USDA loan application.
What are the USDA Down Payment Requirements?
USDA Mortgages have no down payment requirement. Other loan programs don’t allow this.
What types of property are eligible?
While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.
What is the maximum amount that I can borrow?
The maximum amount for an Kentucky USDA Mortgage Loans are determined by:
Maximum loan amount: The is no set maximum loan amount allowed for an USDA Mortgage. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Loan income limits for your area can be found at here.
Maximum financing: The maximum USDA Mortgage amount will be 100% of the appraised value of the home.
What kinds of loans does USDA offer?
Fixed rate loans – All USDA loans are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same during the whole loan period, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.
What is Considered a Rural Area by the USDA?
Rural areas include open country and places with population of 10,000 or less and—under certain conditions—towns and cities. There is an automated rural area eligibility calculator at:http://eligibility.sc.egov.usda.gov.
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Kentucky USDA Loans
What are USDA Home Loans?
USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison, ENG Lending’s USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and no monthly mortgage insurance.
What Types of Loans does USDA offer in Kentucky?
Currently, there are two kinds of USDA Home Loans available in Kentucky for single family households:
USDA Guaranteed Rural Housing Loans
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loanin Kentucky and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.
USDA Direct Rural Housing Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.
What factors determine if I am eligible for a USDA Loan in Kentucky?
To be eligible for A USDA Rural Loan in Kentucky, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through ENG Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.
What is the maximum amount that I can borrow?
The maximum amount for an USDA home loan is determined by:
Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Home Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.
Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).
How much money will I need for the down payment and closing costs?
USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).
What property types are allowed for USDA Rural Loan Mortgages?
While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.
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if you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.
nmls-ca-button-e1415992123657-1

HomePath listings in Jefferson County Kentucky

 Check out the HomePath listings in Jefferson County Kentucky!

Let your clients know these properties are available. Some have special incentives! Select the property address to find out more information.

Click Link to View Property 7303 ETHAN ALLEN WAY
LOUISVILLE, KY 40272 

2.0 br, 1.0 ba | 1022 sq. ft.
MLS ID: 1485137

$23,500
Just Listed
Click Link to View Property 6415 RIVERDALE RD
LOUISVILLE, KY 40272 

3.0 br, 2.0 ba | 1757 sq. ft.
MLS ID: 1484903

$142,500
Just Listed
Click Link to View Property 218 S 43RD ST
LOUISVILLE, KY 40212 

3.0 br, 1.0 ba | 1750 sq. ft.
MLS ID: 1484446

$20,900
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Click Link to View Property 9800 NATIONAL TPKE
FAIRDALE, KY 40118 

3.0 br, 1.0 ba | 1117 sq. ft.
MLS ID: 1485132

$34,900
Just Listed
Click Link to View Property 1526 LONGFIELD AVE
LOUISVILLE, KY 40215 

3.0 br, 1.0 ba | 1032 sq. ft.
MLS ID: 1484756

$37,500
Just Listed
Click Link to View Property 1783 BOLLING AVE
LOUISVILLE, KY 40210 

3.0 br, 2.0 ba | 1468 sq. ft.
MLS ID: 1484967

$37,500
Just Listed
Click Link to View Property 2118 BOLLING AVE
LOUISVILLE, KY 40210 

5.0 br, 1.0 ba | 1580 sq. ft.
MLS ID: 1484992

INCENTIVE AVAILABLE

$19,900
Price Reduced
Click Link to View Property 2304 DUMESNIL ST
LOUISVILLE, KY 40210 

3.0 br, 1.0 ba | 1031 sq. ft.
MLS ID: 1482559

INCENTIVE AVAILABLE

$14,900
Price Reduced
Click Link to View Property 5714 JANET LEE DR
LOUISVILLE, KY 40291 

3.0 br, 2.0 ba | 1427 sq. ft.
MLS ID: 1479451

$171,900
Active
Click Link to View Property 7826 PLEASURE WALK CIR
LOUISVILLE, KY 40258 

2.0 br, 2.0 ba | 1560 sq. ft.
MLS ID: 1483107

$97,500
Active
Click Link to View Property 2708 RALPH AVE
LOUISVILLE, KY 40216 

4.0 br, 2.0 ba | 1945 sq. ft.
MLS ID: 1482488

$122,500

http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
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/
 
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.
 
 
 2 percent interest rate, fixed for 30 years

 

Kentucky Fannie Mae HomePath Homes for Sale 2017 –

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