It's possible to afford a comfortable lifestyle in Kentucky, thanks to its cheap living cost and property prices much lower than the national average. In addition to being home to the annual Kentucky Derby horse race, Kentucky has a robust economy owing to its thriving shipping, transportation, automotive, healthcare, and bourbon distillery sectors.
The Kentucky Housing Corporation can assist you in finding affordable housing in any of the state's major cities, from Louisville and Lexington to the more rural and historic Berea and Bardstown, as well as the state capital, Frankfort. The group's mission is to increase the availability of low-cost homes in Kentucky for first-time and repeat purchasers.
Loan Programs For First-Time Homebuyers In The State of Kentucky
Traditional Favorite of the KHC
The 30-year fixed-rate mortgagee is offered by the KHC Conventional Preferred program. One must not be a first-time buyer to qualify for this program. Mortgage insurance is required. However, it is discounted to help keep your monthly payments down. You may also need to take a pre-closing education course from the lender.
Preferred Plus 80 Conventional KHC
The 30-year fixed-rate mortgage offered by KHC's Conventional Preferred Plus 80 program is subject to regular mortgage insurance. You can be a first-time buyer or a seasoned expert to participate in the Conventional Preferred program.
The Conventional Preferred Plus 80 program has the same maximum purchase price of $340,525 as the Conventional Preferred program and the same minimum down payment, credit score, and DTI ratio criteria.
Income caps vary by jurisdiction and can be anywhere from $131,600 to $173,425. All members of the applicant's household are excluded from these.
USDA, VA, and FHA loans
Also, KHC may assist homebuyers in qualifying for an FHA, VA, or USDA loan. In particular, these loans can be helpful for first-time homeowners because of the low or nonexistent down payment requirements.
Veteran and active-duty military members are the only ones eligible for VA loans, while residents in rural regions can apply for USDA loans. It's easy to get an FHA loan. The bare minimum credit score to qualify for one of these loans through KHC is 620.
Kentucky Help with a Down Payment
KHC's Standard First-Time Homebuyer Grant Program (DAP)
Borrowers can get up to $10,000 from KHC's Regular Down Payment Assistance Program (DAP) as part of their down payment assistance. The loan has an interest rate of 3.75 per cent and a repayment term of 10 years. KHC first mortgage customers who use the standard application are eligible to participate.
Although not required, it is preferable if you are a first-time buyer of a single-family residence. While you will only be approved if you have more than $349,525 saved for a down payment, your liquid assets won't be counted against you either.
Cost-Effective and Accessible KHC DAP
KHC also provides a down payment assistance loan of up to $6,000 for borrowers with lower incomes, with a 10-year term and an interest rate of only 1%. Both first-time and repeat purchasers can take advantage of this Affordable DAP, provided they fall below the program's income guidelines. The range is from $35,360 in certain counties to $67,760 in others.
Help with the Down Payment in Louisville
Louisville, Kentucky's largest city, provides first-time and repeat buyers with a zero-interest loan. If you remain in the house for the specified number of years after receiving aid, the amount of that assistance will be forgiven.
You must purchase a property in the Louisville metropolitan area and have an annual household income of no more than 80% of the area median income (AMI), which is between $47,450 for a single person and $78,600 for a family of six. In addition, you'll need $1,500 in savings and complete a homebuyer education course.
Other Kentucky Homebuyer Assistance Programs
Housing Credit Tax Reduction
A first-time purchaser in Kentucky can receive a tax credit equal to 20% of their monthly mortgage interest costs, up to a maximum of $2,000. A mortgage credit certificate (MCC) is a type of credit that can assist in making buying a property more affordable. A home can cost up to $349,525 (the limit), and income caps vary by county and the number of people living in the family.
Different Loan Programs For First-Time Homebuyers
First-time homebuyers in Kentucky may also look at national programs that speed up the process of purchasing a property.
