Commonwealth of Kentucky
Office of the Governor
FOR IMMEDIATE RELEASE
Charla Jackson Peter502.564.7630, ext. 454
KHC Offers Lowest Home Loan Interest Rates in History
Presidential initiative allows Kentucky’s housing corporation to offer unbeatable interest rates
FRANKFORT, Ky. (Jan. 6, 2010)—Gov. Steve Beshear
today announced that Kentucky Housing Corporation (KHC) will begin
offering the lowest interest rates in its history thanks to President
Obama’s Homeowner Affordability and Stability Plan.
“With housing industry troubles leading nearly every newscast and
topping nearly every paper for the last year, it’s rare to find a
positive point to focus on,” said Gov. Beshear. “Kentucky Housing
Corporation is now offering positive housing news for Kentuckians.”
KHC’s rate for government loans (Federal Housing Administration,
Veterans Administration and Rural Housing Service) are currently at
4.375 percent. Applicants with a 700 or better credit score who are not
using KHC down payment assistance can receive a 4.125 percent rate.
These are the lowest rates that KHC has ever offered, and they plan to
help as many Kentuckians as possible achieve homeownership. KHC has a
stated goal of helping 3,500 first-time home buyers and second-time home
buyers in targeted counties acquire homes in 2010.
“KHC consistently works to help homeowners find ways to work through
whatever barriers they face in acquiring a home,” said Richard L.
McQuady, chief executive officer of KHC. “The federal government’s new
Homeowner Affordability and Stability Plan will enable us to provide
low-rate mortgages to help many more families.”
The Homeowner Affordability and Stability Plan, created by the Obama
administration, is designed to stimulate and stabilize the U.S. housing
market. The plan lowers the borrowing costs of housing finance agencies
(HFAs) across the country, who in turn can offer very low mortgage
rates to home buyers through KHC-approved lenders.
The new bond purchase program supports new lending by HFAs, which
means HFAs can sell bonds easier, and get cash from the bonds they
already have, thereby creating more funds to support home-mortgage
loans. The Obama administration worked with the National Council for
State Housing Agencies (NCSHA), the U.S. Treasury, Freddie Mac, and
Fannie Mae to create the new bond purchase program, which was finalized
in November 2009.
“Without the initiative started by President Obama, and the hard work
from NCSHA, the U.S. Treasury, Freddie Mac, and Fannie Mae in creating a
solid and sustainable plan, these rates would not be possible,” said
Gov. Beshear. “We are grateful that the funds provided through this
initiative will allow thousands of residents across the state to have a
home of their own.”
To learn more about this and other options available to potential home buyers through KHC, visit www.kyhousing.org,
or contact KHC’s Homeownership Department toll-free in Kentucky at
(800) 633-8896 or (502) 564-7630, extension 291, or TTY 711.###
Kentucky Housing Corporation, the state
housing finance agency, was created by the 1972 General Assembly to
provide affordable housing opportunities. As a self-supporting, public
corporation, Kentucky Housing offers lower-than-market rate home
mortgages, housing production financing, homeownership
education/counseling, rental assistance, housing rehabilitation and
supportive housing programs for special needs populations.
For more information, contact:
Kentucky Housing Corporation | 1231 Louisville Rd., Frankfort,
502-564-7630; 800-633-8896 (KY only); TTY 711