Louisville Mortgage Down Payment Assistance (Louisville Metro)
Louisville Metro Down Payment Assistance Information
DOWN PAYMENT ASSISTANCE PROGRAM
The Down Payment Assistance Program provides qualified homebuyers a loan to assist with purchasing a home which will be their primary residence.
Homebuyer households must have income no greater than 80% of median income, adjusted for family size.
All Homebuyers must complete HUD approved homeownership counseling before assistance can be committed. A Certificate of Completion from the counseling agency must be submitted with the application.
Metro Government has revised its Down Payment Assistance Program increasing the amount of assistance.
We are now offering Metro Wide assistance, and homebuyers may qualify for a forgivable mortgage which will be forgiven over a five (5) year period of 10% of the purchase price of the home to a maximum of $10,000.
We will continue to provide maximum assistance in our 2009 TargetArea neighborhoods, and homebuyers may still qualify for a forgivable mortgage which will be forgiven over a ten (10) year period of 20% of the purchase price of the home to a maximum of $20,000.
Our Department has also allocated closing cost assistance in the amount of up to $2,000 for down payment assistance programs; however, homebuyers must pay all prepaid costs from their own funds.
Homebuyers are responsible for obtaining primary financing with a fixed rate mortgage from a reputable lender.
The Office of Housing and Community Development would like to invite potential homebuyers and community partners to the Down Payment Assistance Homeownership Forum! It will be held on Saturday October 28, 2017 from 11:00 a.m.-2:00 p.m. at the Memorial Auditorium Ballroom (970 South 4th Street). This meeting is free and open to the public. Lenders, realtors and counselors are also welcome to set-up a free vendor table. Space is limited, all participants must register by 5 p.m. by October 26, 2017.
Register here as a homebuyer
Register here as a vendor
Homebuyer Assistance Program: Now Accepting Applications
The Homebuyer Assistance Program provides qualified homebuyers with a loan to assist with purchasing a home which will be their primary residence. The Homebuyer Assistance Program is available to any homebuyer that is looking to purchase an existing or newly constructed home in the Louisville Metro area. You do not have to be a first time homebuyer to qualify, however, all homebuyers must be credit and income qualified, see income limits below.
The goals of the Homebuyer Assistance Program are to:
- Encourage homeownership throughout the Louisville Metro area which is economical to low-moderate income consumers in order to assist in preventing future foreclosures;
- Encourage mixed-income neighborhoods and the de-concentration of poverty;
- Encourage homeownership in Metro’s Neighborhood Revitalization Strategy Areas;
- Assist homebuyers in becoming informed consumers in order to successfully navigate real estate transactions and to understand the responsibility of homeownership;
- Encourage reinvestment in Louisville Metro’s vacant and abandoned properties.
How to Qualify:
- Homebuyers must have a household income at or below 80% of the area median income, adjusted for household size, to qualify. Household income will be verified by Metro. Click to view the Current Income Limits
- Homebuyers must be able to obtain a first mortgage from a local financial institution
- Homebuyers must be credit qualified, in which there shall be no unpaid collections on the credit report and no un-discharged bankruptcies.
- Homebuyers with more than $15,000 in liquid assets will be deemed ineligible as the program is designed to aid those in need of assistance.
- Homebuyers must occupy the purchased home as their primary residence for a period of 5 – 15 years, depending upon the amount of assistance received.
How to Apply:
- Homebuyer(s) complete homeownership counseling from a HUD Certified Counseling Agency. Click to see list
- Homebuyer(s) obtain first mortgage pre-approval from financial institution
- Homebuyer(s) applies to the Homebuyer Assistance Program
- Homebuyer(s) receive entrance or denial into the Homebuyer Assistance Program based upon income
- Upon approval, homebuyer(s) engages Realtor (if not already done so) to assist in home search.
- Homebuyer(s) locates home and obtains accepted sales contract (Home Purchase Packet information to be completed by homebuyer(s))
- Homebuyer(s) submits Home Purchase Packet to Metro
- Case review board reviews and approves the amount of assistance available to the homebuyer(s)
- Homebuyer(s) closes on home
- Vacant & abandoned properties only – rehabilitation of home occurs and property passes Metro inspection before occupancy