Kentucky Housing puts up $5 Million for First Time Home Buyers

Saw this online this morning and wanted to share it! More good news for first time home buyers but a short timeline to "git er done"!

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KENTUCKY HOUSING CORPORATION (KHC) HAS SET ASIDE $5 MILLION FOR THIS PROGRAM FOR NEW RESERVATIONS THROUGH NOVEMBER 30, 2009


First Home ADVANTAGE

LOAN AMOUNT
Up to $4,500 In $100 increments. Defer payment untilJuly 1, 2010.


WHAT IS IT?
Second mortgage with P&I payments deferred until July 1,
2010.

ELIGIBLE USES
Down payment and closing costs related to a home purchase.

BORROWER ELIGIBILITY
Must obtain a KHC first mortgage through an approved KHC lender and be a first-time home buyer.

INCOME AND PURCHASE PRICE LIMITS
Must meet KHC income and purchase price guidelines.

TERM AND RATE
After the initial deferral period, the loan will fully amortize over ten years, starting July 1, 2010, at the current first mortgage interest rate not to go below 6 percent.

UNDERWRITING GUIDELINES
Borrowers must have a 620 minimum credit score. Follow agency and KHC guidelines when applying for a second mortgage loan as down payment assistance. Must include the second mortgage loan obligation in the calculation of the borrower’s total housing expense, even though the payment is deferred until July 1, 2010.

DISCLOSURE
Borrower will receive a disclosure detailing information on the terms of the loan, the tax credit, and the option to repay KHC through the federal tax credit.

CLOSING DOCUMENTS
KHC will provide the note and mortgage for the second mortgage in the closing documents set with the first mortgage documents.

APPLICATION FEE
$50 KHC second mortgage fee charged at closing.

FEES
Processing fee to lender for second mortgage: $50.
For more information, contact
Kentucky Housing Corporation’s Homeownership Department toll-free in
Kentucky at (800) 633-8896 or (502) 564-7630, extension 291, or TTY 711.

HURRY! FIRST HOME ADVANTAGE PROGRAM ENDS ON NOVEMBER 30
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I hope it helps a few home buyers and stimulates the market like it was intended!



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