Funds needed for down payments and closing cost are often a problem for home buyers, especially the first-time home buyer. There are four programs offered throughout the state from Kentucky Housing Corporation (KHC).
The Regular DAP is a loan up to $6,000 repayable over ten years at 6% interest. This program is not limited to first-time home buyers. It does have an income limit that varies from county to county but is very liberal. It can be used as all or part of the down payment on new or existing homes up to a maximum purchase price of $243,000.
The other three programs can be used to purchase a home up to the maximum price of $195,700.
Next is the HOME DAP, it goes up to $4,500 and is forgiven 20% per year over a 5 year period. No monthly repayment is required. The intended user for this program is households that fall under a certain income level, again differs from county-to-county. Here is the chart for the Income Limits for this program.
The third KHC program is the HOME Family DAP, it has the same income limits as the Home DAP but requires at least one child lives in the home. This puppy picks up where the Home DAP leaves off beginning at $4,600 and goes up to $10,000. Same terms as the Home DAP, no repayment and forgiven over 5 years.
The fourth program is the HOME Special DAP, it is the same as the HOME Family except instead of requiring a child, at least one of the home buyers must be 62 or older or at least one person must have a permanent disability and is receiving disability income.
Louisville Metro has yet another program for purchasing a home in Jefferson County. This one goes up to $10,000 and is forgivable over 5 years. This one also adds another $2,000 for closing cost. I have closed over a million dollars’ worth of transactions using this program.
There are many other ways to come up with the funds needed for down payment and closing cost. I have closed more than a thousand transactions with seller assistance for the buyer’s closing cost. The best way to discover the options that are available to you is to research and plan with the help of someone that has done it before.
Want to be pre-approved for a DAP in Kentucky?
Visit my online application site or print and use this simple form to get started. If you prefer we can do it over the phone, call my direct line during normal office hours, (502) 753-4127.