First Time Home Buyer Kentucky

First Time Home Buyer
 Programs in Kentucky
Complete First Time Home Buyer Programs Available in Kentucky.

The state agency created by the legislature in Kentucky to offer first time home buyer programs is the Kentucky Housing Corporation. Here is a summary of the current first time home buyer programs that are offered:

Regular Down payment Assistance Program (DAP)

Assistance up to $5,000.
Available to all KHC first mortgage loan recipients.
Repaid over 7 or 10 years at a low fixed interest rate (6.0%)


Assistance up to $4,500
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.

HOME Special Program

Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Purchase price may not exceed $200,000.
Eligible borrowers include:
Households that include a person with a permanent disability and who receives disability income (SSI, SSDI, Veterans Disability etc.).
Households where at least one of the home buyers is age 62 or older.

HOME Family Program

Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Purchase price may not exceed $200,000.
Eligible borrowers include:
Single- and two-parent households that have at least one dependent child under the age of 18 living in the household and that are first-time home buyers (have not owned a home or had an ownership interest in a home in the last 3 years).

For complete details on these first time home buyer programs available to Kentucky residents, visit the Kentucky Housing Corporation website.

It is highly recommend that you also visit the First Time Home Buyer Grants page.
Kentucky First Time Home Buyer Programs

Getting a property in Kentucky may be one of the smartest decisions you will ever make. Kentucky first time home buyer programs give simple programs for those who are buying a house for the first time.

They help first time home buyers offering programs to assist first time home buyers purchase houses. Using their help you can qualify for low interest rates and reduced tax rates through the first time home buying program. There are US government, state offerings and low down costs loans available to qualified first time buyers and many more options.

Most Kentucky first time home buyer programs include the Federal Housing Administration (FHA) and the Veteran’s Administration (VA) loans.
View the list below of Kentucky first time home buyer programs:

•Covington Homebuyer Assistance Program
•Fayette County Local Development Corporation First Time Homeowners Assistance Program
•Jefferson County Home Ownership Assistance Program
•Kentucky FHA Home Loan
•Kentucky First Time Home Buyer Loans
•Kentucky Rural Home Loan
•Kentucky VA Home Loan
•Louisville New Construction Home Ownership Program
•Multi Counties REACH Inc First Key DownPayment Assistance Program
•Multi Counties- The Center For Women and Families, Inc. Common Wealth Individual Development Account Program”

Kentucky Mortgage Lenders
Kentucky First Time Home Buyer Programs

Refinance and Purchase – Direct Lender. Get Pre-Approved In Minutes. Loan Approval in Hours and Close in 10 Days. Get FHA Qualified and Approved. USDA Home Loans – $0 Down Financing Available. Buy & Renovate Your Home with a 203K Loan. VA Home Loans – $0 Down Up To $729,000. Mobile Home Financing, Single Families, 2-4 units, condos. Min. Loan Amount $80K for all loans. Min. Credit Score of 580 (FHA). 620 ( VA, USDA). Call Now For a No Cost Consultation. 502-905-3708 or email us at for a free credit report an application
KHC Mortgage Credit Certificate – More Great News For First-Time Home Buyers

The KHC Mortgage Credit Certificate (MCCs) are a means of providing financial assistance to First-Time Home buyers (with some exceptions) for the purchase of qualifying Residences.

The 2009 KHC Mortgage Credit Certificate Program is designed to benefit purchasers of certain new or existing housing units located in the Commonwealth of Kentucky.
•What is a Mortgage Credit Certificate?

An MCC “converts” a portion of an available mortgage loan interest deduction into a credit against the homeowner’s federal income taxes. This tax credit has the effect of reducing the mortgage interest rate and mortgage loan payments for persons who make qualified purchases of Residences by reducing the federal income tax liability of such persons.

Table I below shows how an MCC can reduce the”effective” mortgage interest rate on a conventional mortgage.
•What is the difference between a “tax credit” and a “tax deduction”?

A “tax credit” entitles a taxpayer to subtract the amount of the credit from his other total federal income tax liability. A “tax deduction,” on the other hand, is subtracted from adjusted gross income before federal income taxes are computed.
•Who is eligible for the MCC?

Any first time home buyer, defined as a person who has not owned a home for the past three years and also meets the KHC income limits.
•Is the MCC program a KHC program?

The MCC program is being administered by KHC. However, your loan program must be a non-KHC loan. You can not obtain a KHC loan and qualify for an MCC.
•How does an MCC “reduce” the mortgage interest rate?

As Table I below indicates, a Borrower who purchases an Eligible Residence with a 5.50 percent fixed rate 30-year mortgage of $100,000 would pay $5,500 in interest payments during the first year of the mortgage.

If the Borrower holds a 25 percent MCC, up to $1,375 (25 percent of $5,500) of the mortgage interest paid could be converted into a federal tax credit, which reduces that Borrower’s federal income tax liability, i.e., the credit reduces the amount of federal taxes payable by the Borrower, up to the amount of the credit.

The remaining 75 percent of the mortgage interest paid, in this case, $4,125, can still be taken as a tax deduction in arriving at the Borrower’s adjusted gross income, thus reducing the amount of the Borrower’s income subject to federal income taxation.

Table I below shows that if this Borrower has an annual tax liability of $1,375 or more after all other deductions and credits, the effective rate of interest paid on the mortgage is reduced to 4.125 percent after the MCC tax credit is taken into account, i.e., annual interest of $4,125 on a $100,000 mortgage loan corresponds to a 4.125 percent interest rate on that loan.

This effect, however, is achieved only when the MCC holder has a sufficient income tax liability to receive the entire benefit from the MCC tax credit.

Table I: Effective Reduction of MortgageInterest Rate Through Use of a 25% MCC

The MCC tax credit reduces the amount of federal income taxes otherwise due by the Borrower. The benefit to the Borrower cannot exceed the Borrower’s federal income tax liability for the year, after other credits and deductions have been taken into account.

However, if the Borrower is unable to use all of the available MCC tax credit in any year, the unused portion of the tax credit can be carried forward three tax years or until used, whichever comes first. A Borrower may want to consider adjusting his or herf ederal income tax withholding (by filing an amended IRS Form W-4) to spread the benefit of the MCC tax credit over the entire year.

•How does a First-Time Home Buyer obtain an MCC?

A First-Time Home Buyer who is purchasing a New or Existing Residence applies for an MCC through a Participating Lender at the same time as applying for a mortgage loan.
•May an MCC be used in connection with a refinanced loan or with an


An MCC cannot presently be issued to a homeowner who is refinancing an existing mortgage loan, except in connection with certain construction loans. An MCC may be assumable by certain qualified buyers.

Contact your lender for additional information.
•What are the Purchase Price and Income Limitations on MCC Applicants?

MCCs are available to eligible first time home buyers purchasing eligible homes in the commonwealth. Your lender will advise you regarding the underwriting procedures required to determine qualification and eligibility of each Applicant for an MCC. Participating Lenders will process the underlying mortgage loans using standard procedures, with adjustments to those procedures as needed in order to satisfy the Program Requirements.
•Can I receive the KHC MCC through any lender?

No. The MCC Program is only offered by qualified participating lenders and is not available through all mortgage lending companies.
Best 0-5% Down Firsthomebuyer Programs
Progressive Payment Saver Buydown Program-Ground-breaking 30 year fixed loan which offers increased purchasing power and low initial mortgage  rate of 3.00% (APR 3.10%) as of 5/26/10.

$8,000 Tax Credit-Deadline June 30th, 2010

New!-Fannie Mae HomePath-Purchase FNMA foreclosure with 30 year fixed loan and NO PMI 

USDA Rural Loan-30 year fixed zero down loan with 620 score. 0 PMI or mortgage insurance.

My Community Plus -Exclusive 3% down program for Teachers, Firefighters, Paramedics, Police Officers, Nurses and other Healthcare workers, and Military Personnel-Veteran. Easier qualifying guidelines and discount on closing costs.  

Fannie Flex 95% Financing Program-Great FNMA 30 yr fixed loan if you plan on living in the home a long time.

Fannie Mae Expanded Program-only 620 credit score may qualify

Home Possible-Freddie Mac Community Lending program designed to meet the needs of low and moderate income borrowers by providing financing up to an LTV of 97%

FirstHomeBuyers Down Payment Assistance Program-Get up to $25,000 for down payment or earnest money deposit. Pay off debt to help you qualify.

Government Loans
FHA requires only 3.5% Down and VA Loans requires 0 Down. Usually, fair to marginal credit will qualify for low fixed rate mortgage rate program. 

FHA-Best 30 year fixed program with low rate. If you have bad credit, you should contact a loan officer to assist you in improving your credit and scores. 

FHA $100 Down HUD Home Loan Program-Purchase HUD Foreclosure Home with $100 down payment.   

Kiddie Condo-Parent(s) can co-sign for son and daughter without occupying property.

Streamline 203k Renovation Loan-Repairs and home improvements may be added into mortgage to fix up home. Great for foreclosures and short sales!

2-1 Buydown-Great 30 year fixed loan with low initial rate of 3.00% (APR 3.12%-5/07/10)-not adjustable rate mortgage!

VA-0% Down Payment geared toward Veterans and active Personnel in Navy, Army, Marine Corps, Air Force, Coast Guard, and National Guard.

First Time Home Buyer Programs in Kentucky


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