Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Down Payment Assistance Kentucky 2022

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Down Payment Assistance Kentucky 2022: Down Payment Programs in Kentucky for 2022 ATTENTION: KHC has announced changes to the Down Payment Assistance Programs! This is great news ...

Kentucky Down payment assistance loans are available up to $7,500 for Mortgage

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. 

​​​​KHC recognizes that down payments, closing costs, and prep​aids are stumbling blocks for many potential home buyers. Here are several loan programs to help. 

Regular DAP

• Purchase price up to $346,644 with Secondary Market.
• Assistance in the form of a loan up to $7,500 in $100 increments.
• Repayable over a 10-year term at 3.75 percent.
• Available to all KHC first-mortgage loan recipients.

Affordable DAP

• Purchase price up to $346,644​ with Secondary Market.
  
• Assistance up to $7,500.
• Repayable over a 10-year term at 1.00 percent.
• Borrowers must meet Affordable D​AP income limits.

​More About Down Payment and Closing Costs

• No liquid asset review and no limit on borrower reserves.
• Specific credit underwriting standards may apply to down payment programs.​

USDA Mortgage Guidelines for Gift Funds and Gift Of Equity

Kentucky USDA Mortgage Guidelines for Gift Funds and Gift Of Equity. 

Guidelines -  Personal Gift Funds

•      Gift funds may not be used as reserves.
•      Gift funds are considered the applicant's own funds and are eligible to be returned to the
applicant at loan closing as applicable.
•      Cash on hand is not an acceptable explanation for the source of funds.
•      Gift funds that will be used for funds to close may be entered in the "Other Credits"
section of the
•      "Transaction Details" GUS application page. The amount entered should not exceed the actual
amount. of funds required to close. Remaining gift funds not used for closing assistance may be
entered in the "Asset and Liabilities" application page as "gift funds".
If cash back is received at loan closing, it cannot exceed monies advanced by the borrower minus
utilized gift funds.

Documentation  - Personal Gift Funds

Gift letter - Gift funds must be properly sourced:
•      If the funds have been deposited to the borrower's account, obtain a gift letter to state
the funds do not have to be repaid and bank statement as evidence of funds from the donor's
account.
•      If the funds have not been deposited in the borrower's account, obtain a gift letter to
state the funds do not have to be repaid, a certified check, money order, or wire transfer and a
bank statement showing the withdrawal from the donor's account.
•      If the gift funds will be sent directly to the settlement agent, the lender must obtain a
gift letter to state the funds do not need to be repaid and verify the funds have been received by
the settlement agent by the donor.

Guidelines -  Gift of Equity

•      These gifts should be applied as a reduction to the purchase price of the dwelling.
•      Ensure the appraiser is aware of the gift.  This will allow them to properly complete their
appraisal report, note the reduction, and support the appraised value compared to purchase price if
applicable.
The borrower may not receive cash back at loan closing for these gifts.

Documentation -  Gift of Equity

Gift Letter -  See Requirements in "Notable Agency Differences" Above

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Costs To Think About In Getting A Kentucky Mortgage Loan

Mortgage Costs for A Kentucky Mortgage Loan

Payments & fees you can expect for a Kentucky Mortgage Loan Approval Here's a breakdown of the expenses you can expect: Down Payment and Earnest Money Before you even buy the home, you'll need cash for your earnest money and down payment. You may have heard the myth that you need a 20% down payment to buy a home, but there are actually loan programs available that require as little as 3.5% — or even 0% down for those who qualify. Contact me to learn more. The Mortgage Payment Your monthly mortgage payment consists of: Principal: The actual amount you are borrowing. Interest: What it costs to borrow the money for your home. Escrow: A third party account used to pay for taxes and insurance on your behalf. Learn more about escrow. Closing Costs You'll also have to pay closing costs when ownership of the home is transferred to you. Closing costs are a one-time payment due when you close your loan. Everyone's closing costs vary slightly, but below are a few examples of what might be included: You can negotiate with the seller to pay some or all of your closing costs. If the seller won't pay and you can't afford these costs, talk to me about rolling them into your loan. Learn more about closing costs. Other Expenses to Save For Don't forget: Your home will need regular maintenance and upkeep. You'll also have bills for electricity, water, internet, and other utilities to pay. And don't forget your moving costs! Whether it's hiring professionals or handing out pizza and sodas to your buddies, you still need to save some cash! If you have further questions about the costs that come with buying a home, I'm here to help. Contact me anytime. 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 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). I lend in the following states: Kentucky