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Kentucky KHC Hardest Hit Fund Down Payment Assistance

The Kentucky Housing Corporation (KHC) Hardest Hit Fund Down Payment Assistance Program offers financial assistance to homebuyers in specific areas of Kentucky, reducing the upfront costs of purchasing a home. By providing forgivable loans, the program makes homeownership more accessible to eligible residents while supporting housing stability in areas affected by economic challenges.

Benefits

  • Provides up to $10,000 in assistance for down payment and closing costs.
  • The loan is forgivable over five years, provided the buyer remains in the home as their primary residence for the duration.
  • Works alongside KHC's affordable mortgage options, ensuring comprehensive financial support for buyers.
  • Targets areas of Kentucky most impacted by economic hardship, helping to revitalize communities.

Eligibility Requirements

  • Applicants must purchase a property in eligible areas designated by the program.
  • Income limits apply, varying based on household size and the location of the property.
  • The property must be located in Kentucky and used as the buyer’s primary residence.
  • A minimum credit score of 640 is generally required, with lender-specific underwriting criteria also applicable.
  • Participants must complete a KHC-approved homebuyer education course to ensure they are prepared for the responsibilities of homeownership.

Additional Information

The KHC Hardest Hit Fund Down Payment Assistance Program is a vital initiative for residents in designated areas of Kentucky, offering forgivable loans to reduce the financial burden of purchasing a home. By promoting stability and revitalizing communities, this program enables eligible homebuyers to achieve sustainable homeownership while contributing to the economic recovery of affected areas. Administered by the Kentucky Housing Corporation, this program is a cornerstone of affordable housing solutions across the state.

Frequently Asked Questions About Our Program

What is the Kentucky Housing Corporation (KHC) Hardest Hit Fund Down Payment Assistance Program?

The KHC Hardest Hit Fund Down Payment Assistance Program (HHF DAP) provides eligible first-time homebuyers with up to $10,000 in down payment assistance. This assistance comes as a zero-interest, forgivable second mortgage loan with a five-year term.

Who is eligible for the HHF DAP?

Eligibility for the HHF DAP requires applicants to be first-time homebuyers, defined as individuals who have not owned a home in the past three years. Additionally, applicants must meet specific income and purchase price limits set by KHC.

Which counties in Kentucky offer the HHF DAP?

As of 2025, the HHF DAP is available in select counties, including Christian, Hardin, Jefferson, and Kenton. Availability is on a first-come, first-served basis, subject to funding.

Is homebuyer education required for the HHF DAP?

Yes, completion of a pre-purchase homebuyer education course is mandatory for all applicants. This ensures that buyers are well-prepared for the responsibilities of homeownership.

Are there specific income limits for the HHF DAP?

Yes, applicants must adhere to income limits that vary based on household size and county. These limits are designed to assist moderate-income households in achieving homeownership.

What are the purchase price limits for homes under the HHF DAP?

The program imposes purchase price limits that differ by county and property type. These limits ensure that assistance is provided for modestly priced homes suitable for moderate-income buyers.

How is the $10,000 assistance amount determined?

Eligible applicants can receive up to $10,000 in down payment assistance. The exact amount is determined based on the homebuyer's needs and the program's guidelines.

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What does it mean that the loan is forgivable?

The forgivable loan means that if the homeowner maintains the property as their primary residence for the five-year term, the loan is forgiven, and repayment is not required.

What happens if I sell or refinance my home before the five-year term ends?

If the property is sold or refinanced before the completion of the five-year term, the remaining balance of the assistance must be repaid.

Are there credit score requirements for the HHF DAP?

While the program itself may not specify a minimum credit score, applicants must meet the credit underwriting standards of KHC and the participating lender.

Can the HHF DAP be combined with other KHC programs?

Yes, the HHF DAP can be used in conjunction with KHC's first mortgage loan products, provided all program requirements are met.

Is there a deadline to apply for the HHF DAP?

The program operates on a first-come, first-served basis and is subject to the availability of funds. It's advisable to apply as early as possible.

Are there any fees associated with the HHF DAP?

Standard loan fees, such as origination and processing fees, may apply. Applicants should discuss all potential fees with their lender.

Can I apply for the HHF DAP if I have owned a home before?

The program is specifically designed for first-time homebuyers. However, exceptions may apply for individuals who have not owned a home in the past three years.

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How do I apply for the HHF DAP?

To apply, contact a KHC-approved lender who will guide you through the application process, including verifying eligibility and assisting with necessary documentation.

Is the HHF DAP available for new construction homes?

Yes, the assistance can be used for both existing homes and new construction, provided the property meets KHC's guidelines.

Are there any property requirements for homes purchased with HHF DAP?

The property must be located in an eligible county, serve as the buyer's primary residence, and meet KHC's property standards.

What is the source of funding for the HHF DAP?

The program is funded through the federal Hardest Hit Fund, established to provide targeted aid to families in states hit hard by the economic and housing market downturn.

Can the HHF DAP assist with closing costs?

Yes, the assistance can be applied toward both down payment and reasonable closing costs, reducing the upfront financial burden for homebuyers.

Is there a limit on the amount of liquid assets I can have to qualify for the HHF DAP?

While specific asset limits may not be imposed, applicants are expected to contribute a portion of their own funds toward the purchase and demonstrate a need for assistance.

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