Kentucky KHC Conventional Loan Programs Guide

Guide to the Kentucky KHC Conventional Loan Programs

The Kentucky KHC Conventional Loan Programs provide affordable mortgage options for homebuyers in Kentucky, helping them achieve homeownership with competitive interest rates and flexible terms. For 2025, these programs continue to offer financial assistance to eligible individuals and families, ensuring access to affordable home loans. Below is an updated guide to the Kentucky KHC Conventional Loan Programs, detailing eligibility, benefits, and the application process.

1. Program Overview:

• Purpose: The Kentucky KHC Conventional Loan Programs are designed to help eligible homebuyers secure conventional home loans with competitive interest rates and favorable terms. These programs aim to make homeownership more accessible by providing affordable financing options for first-time and repeat homebuyers in Kentucky.
• Loan Terms: The loans are structured with fixed-rate mortgages, offering stability and predictable monthly payments over a term of 15, 20, or 30 years. This flexibility allows borrowers to select the mortgage term that best suits their financial situation.
• Assistance Options: The Kentucky KHC Conventional Loan Programs may be combined with down payment assistance options to help buyers cover their upfront costs, including down payments and closing fees.

2. Eligibility Requirements for 2025:

To qualify for the Kentucky KHC Conventional Loan Programs, applicants must meet the following criteria:

• Income Limits: The program is available to moderate-income homebuyers, with income limits based on household size and location within Kentucky. These limits ensure the program benefits individuals and families who need assistance with financing a home purchase.
• Credit Score: A minimum credit score of 620 is required to apply for a conventional loan through the Kentucky KHC program. Lenders may consider other factors in the approval process, but this score serves as the baseline requirement.
• First-Time Homebuyer Status: While the program is primarily designed for first-time homebuyers, repeat buyers may also be eligible, depending on specific program guidelines and area-based eligibility.
• Property Requirements: The property must be located in Kentucky and meet specific price limits to ensure it remains affordable. The home must be the applicant’s primary residence, and it can be either a new or existing property.
• Homebuyer Education: Applicants must complete an approved homebuyer education course. This course is designed to equip buyers with the knowledge they need to manage their mortgage, plan for future home expenses, and successfully maintain homeownership.

3. How to Apply:

The application process for the Kentucky KHC Conventional Loan Programs follows these steps:

• Assigned Loan Officer: After expressing interest in the program, you will be assigned a dedicated loan officer. This loan officer will assist you throughout the application process, help verify your eligibility, and gather necessary documentation.
• Required Documentation: Be prepared to provide documents such as proof of income, tax returns, credit history, and a certificate from the homebuyer education course.
• Submit Your Application: Once all documentation is complete, submit your application to your loan officer. The loan officer will review your eligibility, process your application, and assist you with the next steps.

4. Homebuyer Education Course:

• Mandatory Requirement: Completion of an approved homebuyer education course is a requirement for all applicants. The course will cover essential topics such as budgeting, understanding mortgage terms, and long-term homeownership responsibilities.
• Course Options: The course is available online and in-person, providing flexibility to accommodate your schedule. A certificate will be issued upon completion, which is required as part of the application process.

5. Down Payment Assistance:

• Down Payment Assistance Options: The Kentucky KHC Conventional Loan Programs can be paired with down payment assistance programs, offering up to $6,000 in assistance to eligible homebuyers to help cover the costs associated with purchasing a home.
• Repayment Terms: If down payment assistance is provided, it is typically offered as a second mortgage that is deferred, meaning no monthly payments are required. The loan is due when the home is sold, refinanced, or paid off.

6. Finalizing the Loan:

• Approval Process: After your application is processed and approved, your loan officer will guide you through the next steps, which include signing the loan documents and preparing for closing.
• Closing Costs: While the program may help with down payment costs, you may still be responsible for certain closing costs. Your loan officer will outline all costs involved and explain what is covered by the program.

Our team of dedicated loan officers is here to support you through every step of the homebuying process. From gathering documents to understanding the mortgage terms, they will provide the guidance you need to navigate the Kentucky KHC Conventional Loan Programs and help you achieve your homeownership goals.