Kentucky KHC Hardest Hit Fund Down Payment Assistance Guide

Guide to the Kentucky KHC Hardest Hit Fund Down Payment Assistance

The Kentucky KHC Hardest Hit Fund Down Payment Assistance program provides financial assistance to homebuyers in Kentucky who are facing economic challenges. This program is aimed at helping eligible individuals and families who are struggling with high housing costs, ensuring that they can purchase a home with the support they need. For 2025, the program offers continued benefits and updated eligibility criteria to help those most in need of assistance. Below is an overview of how the program works, including its eligibility requirements and application process.

1. Program Overview:

• Purpose: The Kentucky KHC Hardest Hit Fund Down Payment Assistance program is designed to provide financial assistance to homebuyers who are facing significant economic hardship, especially those struggling with high housing costs. The program helps eligible homebuyers cover the down payment and closing costs associated with purchasing a home in Kentucky.
• Assistance Amount: Eligible homebuyers can receive up to $10,000 in down payment and closing cost assistance, helping to reduce the financial burden of purchasing a home.
• Loan Structure: The financial assistance is provided as a second mortgage that is deferred and typically due when the home is sold, refinanced, or paid off. This deferred structure makes the program accessible without the burden of monthly payments for the assistance loan.

2. Eligibility Requirements for 2025:

To qualify for the Kentucky KHC Hardest Hit Fund Down Payment Assistance program, applicants must meet the following criteria:

• Income Limits: The program targets individuals and families facing economic hardship, with income limits based on the applicant’s household size and location. These limits are updated annually to ensure that the program serves low- and moderate-income buyers.
• First-Time Homebuyer Status: The program is primarily intended for first-time homebuyers, but some exceptions may apply, such as for individuals purchasing in certain designated areas.
• Credit Score: A minimum credit score of 620 is typically required, although lenders may also take other factors into consideration when reviewing your application.
• Property Requirements: The home must be located in Kentucky and serve as your primary residence. The property must also meet certain price limits to ensure affordability.
• Homebuyer Education: Applicants must complete a homebuyer education course, which covers topics such as budgeting, managing mortgage payments, and understanding the responsibilities of homeownership. A certificate of completion is required to proceed with the application.

3. How to Apply:

To apply for the Kentucky KHC Hardest Hit Fund Down Payment Assistance, follow these steps:

• Assigned Loan Officer: Once you express interest in the program, you will be assigned a loan officer who will guide you through the application process. The loan officer will assist you with verifying your eligibility and gathering the 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: After gathering all the required documentation, submit your application to your loan officer. The loan officer will review your information, confirm your eligibility, and guide you through the approval process.

4. Homebuyer Education Course:

• Mandatory Requirement: Completion of a homebuyer education course is mandatory for all applicants. This course provides critical knowledge to help you navigate the homebuying process and manage your mortgage effectively.
• Course Options: The course is available online and in-person, allowing you to choose the format that best suits your schedule. Upon completion, you will receive a certificate, which is required to proceed with your application.

5. Down Payment and Closing Cost Assistance:

• Assistance Amount: The Kentucky KHC Hardest Hit Fund Down Payment Assistance program provides up to $10,000 in assistance, helping homebuyers cover the costs of down payments and closing fees.
• Deferred Loan Terms: The assistance is structured as a deferred second mortgage. This means no monthly payments are required, and the loan is due when the home is sold, refinanced, or paid off, reducing the immediate financial burden on homebuyers.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your loan officer will walk you through the next steps, including signing the loan documents and preparing for closing.
• Closing Costs: While the program helps cover down payment and closing costs, there may still be additional expenses you need to pay. Your loan officer will provide a detailed breakdown of all the costs involved in purchasing the home.

Our experienced loan officers are here to make the homebuying process as smooth as possible. They will guide you every step of the way, helping you gather documentation, navigate the approval process, and finalize your loan. With their support, you can take full advantage of the Kentucky KHC Hardest Hit Fund Down Payment Assistance program and move one step closer to homeownership.