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Kentucky KHC Regular Down Payment Assistance Program Guide

Explore the Kentucky KHC Regular Down Payment Assistance Program, designed to help eligible homebuyers with down payment and closing cost assistance. Learn about eligibility, benefits, and how to apply in 2025.

Guide to the Kentucky KHC Regular Down Payment Assistance Program

The Kentucky KHC Regular Down Payment Assistance Program provides financial support to eligible homebuyers in Kentucky by offering assistance with down payments and closing costs. This program is designed to make homeownership more affordable for first-time homebuyers and those purchasing a home in Kentucky. For 2025, the program continues to offer important financial assistance and updated eligibility criteria to ensure more Kentuckians have access to affordable homeownership options.

1. Program Overview:

  • Purpose: The Kentucky KHC Regular Down Payment Assistance Program helps eligible homebuyers by providing financial support to cover down payments and closing costs, making homeownership more attainable for individuals and families in Kentucky.
  • Assistance Amount: Eligible homebuyers can receive up to $6,000 in down payment and closing cost assistance, which can significantly reduce the upfront costs associated with purchasing a home.
  • Loan Structure: The assistance is provided as a second mortgage, typically deferred and repaid when the home is sold, refinanced, or paid off. This structure reduces the immediate financial burden on homebuyers by eliminating the need for monthly payments on the second mortgage.

2. Eligibility Requirements for 2025:

To qualify for the Kentucky KHC Regular Down Payment Assistance Program, applicants must meet the following criteria:

  • Income Limits: The program has income limits that vary based on household size and the location of the property. These limits are designed to assist moderate-income homebuyers who may need financial help to afford the upfront costs of homeownership.
  • Credit Score: Applicants must have a minimum credit score of 640. Lenders may also consider other factors, such as your debt-to-income ratio, when evaluating your application.
  • First-Time Homebuyer Status: The program is primarily designed for first-time homebuyers. However, exceptions may apply in certain cases, such as for veterans or individuals purchasing in qualifying areas.
  • Property Requirements: The home must be located in Kentucky and used as your primary residence. Additionally, the property must meet specific price limits to ensure affordability for eligible buyers.
  • Homebuyer Education: Applicants are required to complete a homebuyer education course. This course provides important information on budgeting, mortgage management, and the responsibilities of homeownership. A certificate of completion is required as part of the application process.

3. How to Apply:

To apply for the Kentucky KHC Regular Down Payment Assistance Program, 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. Your loan officer will help verify your eligibility and assist with collecting the necessary documentation.
  • Required Documentation: Be prepared to submit documents such as proof of income, tax returns, credit reports, and a certificate of completion from the homebuyer education course.
  • Submit Your Application: After gathering all required documents, submit your application to your loan officer. The loan officer will review your application, verify your eligibility, and assist with the next steps.

4. Homebuyer Education Course:

  • Mandatory Requirement: All applicants must complete an approved homebuyer education course. This course covers essential topics such as budgeting, mortgage management, and understanding the long-term financial responsibilities of owning a home.
  • Course Options: The course is available both online and in-person, giving you flexibility in how you complete it. After completion, you will receive a certificate that must be submitted as part of your application.

5. Down Payment and Closing Cost Assistance:

  • Assistance Amount: The program provides up to $6,000 in down payment and closing cost assistance, helping to ease the financial burden of purchasing a home. This assistance is available to qualified homebuyers based on their specific needs.
  • Deferred Loan Terms: The assistance is offered as a deferred second mortgage, which means there are no monthly payments required. The loan is typically due when the home is sold, refinanced, or paid off.

6. Finalizing the Loan:

  • Approval Process: Once your application is approved, your loan officer will assist you with the next steps, including signing the loan documents and preparing for closing.
  • Closing Costs: While the program helps cover down payment and closing costs, you may still be responsible for some other fees. Your loan officer will provide a detailed breakdown of all the costs associated with your home purchase and clarify what is covered by the program.

Our experienced loan officers will be there to guide you every step of the way, from your initial inquiry to closing on your new home. With their support, you can confidently navigate the homebuying process and make the most of the Kentucky KHC Regular Down Payment Assistance Program. We're committed to helping you achieve your dream of homeownership in Kentucky.

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