Kentucky First Time Home buyer Down Payment Assistance for $7,500

ATTENTION: KHC has announced changes to the Down Payment Assistance Programs! This is great news for buyers in Kentucky!

1. KHC is increasing the down payment assistance program amount from $6,000 to $7,500. This is for both Regular Down Payment and for Affordable Down Payment assistance programs

2. The interest rate on the repayment of the down payment assistance will go from 5.5% to 3.75%. (Affordable Down Payment assistance will remain at 1%)

Realtors: We are here to help you and your clients take advantage of these great opportunities.

Buyers: We are here to answer questions you have regarding this program and qualification requirements.

KHC is used for mostly applicants in Kentucky that don't have access to money for a down payment on their home.

100% Financing – No Money Down Home Loans in Kentucky with USDA and VA loan

100% Financing – No Money Down Home Loans

For today’s home buyers with good credit and a steady income, there are several no down payment mortgage programs available which offer 100% financing for purchase so you can buy a home or even refinance.  We can explain your options for how to buy your first home with no money down and determine if a no down payment mortgage is right for you.

VA Loan for Kentucky Active duty and  Veterans

• Must be primary residence and have a VA COE 
• VA loans are typically the best loan option for first time home buyers if one of the borrowers is a veteran
• Can be used to purchase a house for your primary residence, as well as, to refinance for cashout

Learn more about Kentucky VA Loans

Kentucky USDA Rural Development Loan

• USDA Rural Development is typically the best home loan option for first time buyers that are  in a rural area and  the property is in an eligible rural area with household income limits for Kentucky Home buyers making less than $91k to $120k depending on family size and county in Kentucky. 
• Can be used to purchase your primary residence

Learn more about Kentucky USDA Rural Development Loans

Purchase with Seller Paying Closing Costs

A common purchase strategy of buyer agreeing to pay a higher dollar amount than normally would be negotiated (e.g. full asking price) in exchange for seller agreeing to pay closing costs. Net effect is that buyer does not have to pay out-pocket for their closing costs and seller nets same amount as if they would have sold for the lower price they realistically expected to sell home for.

NOTE: In order for the loan to be approved by the mortgage lender, the house will need to appraise for no less than the total contracted purchase price (which includes the added dollar value for the buyer’s closing costs).

A 30 year fixed rate loan with 360 equal payments, at a 90% LTV loan, resulting in a 10% down payment, and an annual percentage rate of 4.75% will have a monthly principal and interest payment of $1,043 per month. This payment does not include the amounts for taxes, property insurance, or mortgage insurance.