On Wednesday January 11, 2017 The Kentucky Housing Corporation (KHC) has just announced their new Hardest Hit Fund Down Payment Assistance Program (HHF DAP) . This program will allow qualified borrowers up to $10,000 in down payment assistance towards the purchase of a new home in the State of Kentucky.
The program offers up to $10,000 at a 0 percent interest rate, which is a forgivable second mortgage loan with a 5 year term. The property must be located in Christian, Hardin, Jefferson, or Kenton County. The program does not allow for new construction properties, meaning the property must have previously been occupied.
Borrowers looking to utilize this program must be first-time home buyers (no ownership interest in the last three years). You will be required to provide the last 3 years of federal tax returns or tax transcript’s to prove eligibility. Borrowers will also need to complete pre-purchase home buyer education and also complete the Dodd-Frank Certification.
Offical Guidelines from KHC:
HHF DAP Program Guidelines:
- $10,000, 0 percent interest, forgivable second mortgage loan with a 5 year term.
- Not required to be at maximum LTV first mortgage amount.
- No less than 81 percent LTV with conventional loans.
- Property must be located in one of the four counties:
- New construction properties are not allowed.
- Property has to have been previously occupied.
- Secondary Market Purchase Price and Income Limits apply.
- Borrower must be a first-time home buyer (no ownership interest in the last three years).
- Most recent three year federal tax returns or tax transcripts required.
- Pre-purchase home buyer education required for all borrowers.
- Dodd-Frank Certification must be completed.
- Terms and Conditions form (prints with the HUD-1, Note, and Mortgage).
- This form highlights a few of the program requirements, such as occupancy/ownership status and forgiveness period.
The HHF DAP will utilize a GFE, TIL, and HUD-1, since it does not meet TRID regulations. These documents will be provided through KHC's Loan Reservation System. These loans will close in KHC's name and be funded by the lender. KHC's system will provide a Note and Mortgage in KHC's name. The lender is responsible to deliver all disclosures to the borrower(s) at time of origination and closing. All KHC Program Guides have been updated to reflect the new HHF DAP.
American Mortgage has been the #1 Lender for Kentucky Housing Corporation for over 10 years. This is a very popular program and the funds will not last. If you would like more information on this loan program please contact us or click Apply Now.