Category Archive: Down Payment Assistance

May 10

KHC Funds Down Payment Assistance Programs

I noticed earlier this week that KHC had funded two of the more popular down payment assistance programs.  Check Available Funds.

The Regular DAP must be repaid over a ten-year period at 6%.  It is provided in the form of a second mortgage loan up to $6,000, and can be used to purchase a home up to a price of $243,500. This DAP is NOT restricted to first-time home buyers.  Home buyers that recently sold a home but do not have enough funds to purchase another can use this program!

Home-DAP goes up to $4,500 and does not require repayment, it is forgiven over five years.  The ceiling price for homes when this program is being used is $195,700. 

Okay, here is how both programs can be used for maximum benefit.  The buyer can borrow the entire down payment and have the seller pay all of the closing cost and pre-paids. It is possible to purchase a home with less than $100.  The only reason any money may be needed is because the down payment could be an odd number and the DAP’s are made in $100 increments.  

Apr 23

Down Payment Assistance In Kentucky

Ever had a loan officer GIVE you money? I am not talking about a $100 knocked off of the closing cost but cold hard cash ranging from $4,500 to $10,000 for down payment!

We had another training session this morning regarding Kentucky Housing Corp (KHC) loans, this time a DE Underwriter helped with the presentation.  In addition to being a Direct Endorsement Underwriter for FHA she is also delegated to sign on behalf of KHC.  That can speed up the timeline in our shop by as much as a week compared to other lenders.

We talked a great deal about the different combinations using an FHA/KHC first mortgage with down payment assistance (DAP).  The DAP’s are in the form of a second mortgages, some forgivable over time and one that must be repaid.    Kentucky Housing DAP’s range from $4,500 to $6,000. 

This is how it works.

The first mortgage is an FHA/KHC loan for 96.5% of the purchase price.

The DAP is a second mortgage for 3.5% of the purchase price. 

The seller can pay all of the closing cost and pre-paids.

The borrower only needs to pay for an appraisal (unless the seller pays for that too). 

Inside scoop for you, I spoke to my source in Louisville Metro last week, they are expecting funding for their DAP program in July.  Last year it was $10,000 a pop plus another $2,000 for closing costs.  This program requires FHA home ownership classes so sign up soon if you want to grab this round.

 

Need Assistance with a Down Payment?

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.

 

Feb 26

Grants and Down Payment Assistance (DAP)

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.

Apr 23

Down Payment Assistance

I just finished a report prepared from the notes for my book Invisible Money in Kentucky that will be published this summer.  The subject of the book is different methods of coming up with a down payment and closing costs.

There is still over half a million left in down payment assistance funds at KHC. 

 Looks like someone would grab some of that while it is still there.