The dream of owning a house has become a reality for many, especially first-time home buyers. With its lower cost of living and affordable housing than the national average, Kentucky is an ideal place to call home. Whether you prefer Louisville and Lexington's bustling cities or Berea and Bardstown's peaceful towns, Kentucky is a wonderful place to establish roots. Looking to own a home in Kentucky? This can be a reality with the Kentucky First-Time Home Buyer Program. Imagine a house that’s truly yours, where memories bloom and laughter echoes through the rooms. At Loan Factory, we are ready to guide you through every step of the process, support you, and help make your dreams come true. Get ready to call Kentucky your new home when you work with us.
The Kentucky Housing Corporation (KHC) offers various programs to assist first-time and repeat homebuyers. Let's explore some of the prominent options:
1. KHC Conventional Preferred
The KHC Conventional Preferred program provides a 30-year mortgage with a fixed interest rate. You don't have to be a first-time homebuyer to take advantage of this program. Some key highlights include:
- Down Payment: 3% (down payment assistance available)
- Credit Score: Minimum 660
- Debt-to-Income Ratio: Maximum 40% to 50%, depending on loan type
- Income Limits: Must be at or below 80% of area median income (AMI)
- Property Requirements: Must be a single-family home, townhome, condominium, or manufactured home on a permanent foundation (two-unit homes not eligible), located in Kentucky, and must be your primary residence. The purchase price limit is $481,176.
2. KHC Conventional Preferred Plus 80
This program is similar to the Conventional Preferred but requires standard mortgage insurance coverage. The requirements are the same regarding down payment, credit score, DTI ratio, and purchase price. However, the county income limits range from $143,500 to $181,300 (as of 2023).
3. Kentucky Down Payment Assistance
- KHC Regular Down Payment Assistance Program (DAP)
The Regular DAP offers a loan of up to $10,000, repayable over 10 years at an interest rate of 3.75%. This program is open to all KHC first mortgage borrowers, whether first-time or repeat buyers. The purchase price limit is $481,176, with no limit on cash reserves or consideration of liquid assets for eligibility.
- Home Buyer Tax Credit
First-time homebuyers in Kentucky can benefit from a federal tax credit of up to 20% of their annual mortgage interest, capped at $2,000 per year. This Mortgage Credit Certificate (MCC) helps make homeownership more affordable.
***Specialty Louisville: Down Payment Assistance Program***
For those purchasing in Louisville, the city offers a forgivable loan for down payment assistance, based on individual situations. The assistance can be forgiven between 5 and 15 years after occupying the home, provided you remain in the home for that period. Requirements include:
- Income: At or below 80% AMI
- Savings: At least $1,500
- Homebuyer Education Course: Completion required
- Purchase Price Limits: $235,000 for an existing single-family home, $315,000 for a new single-family home
→ Read more: first time home buyer loan requirements
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Why You Should Work with Loan Factory
At Loan Factory, we pride ourselves on offering unparalleled expertise and support throughout your home buying journey. Here’s why partnering with Loan Factory can make a difference:
1. Personalized Guidance
Navigating the complexities of securing a first-time home buyer loan in Kentucky can be overwhelming. Our team of experienced mortgage professionals provide personalized guidance tailored to your unique financial situation and homeownership goals.
2. Competitive Rates
Loan Factory works with a wide range of lenders to ensure you get the most competitive rates and terms available. This helps make your home purchase more affordable and manageable in the long run.
3. Streamlined Process
Our user-friendly and tech-forward platform simplifies the loan application process. From pre-approval to closing, Loan Factory ensures a smooth and efficient experience, saving you time and reducing stress.
4. Comprehensive Support
We offer comprehensive support beyond just securing your loan. From providing insights on the housing market to helping you understand various loan options and down payment assistance programs, we’re with you every step of the way.
→ Read more: how to qualify for a home loan first-time buyer
Start Your Path to Homeownership with Loan Factory
Imagine waking up to rolling green hills, sipping sweet tea on your porch, and feeling the warm embrace of Southern hospitality. That’s the Kentucky charm! Ready to take the next step towards owning your first home in Kentucky? Contact Loan Factory today at (714) 444-9999 or visit our website at www.LoanFactory.com. Let us help you find the best first-time home buyer loan in Kentucky and turn your homeownership dream into reality! Please check First-Time Home buyer Checklist before applying
