Kentucky Housing recognizes that down payments, closing costs and prepaids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your needs.
Regular Down payment Assistance Program (DAP)
- Purchase price up to $243,000.
- Assistance in the form of a loan up to $4,000 in $100 increments.
- Repayable over a seven-year term at 6 percent. A DAP of $4,000 over 7 years at 6 percent interest would equal a payment of $58.44.
- Available to all KHC first mortgage loan recipients who are first-time homebuyers in non-targeted counties and first and second-time homebuyers in targeted counties.
HOME-DAP
- Purchase price up to $195,700.
- Assistance up to $4,500
- No monthly repayment; forgiven over five years.
- Existing homes only.
- Borrowers must meet HOME-income guidelines.
HOME Special Program
- Purchase price up to $195,700.
- Assistance up to $10,000
- No monthly repayment; forgiven over five years.
- Existing homes only.
- Borrowers must meet HOME-income guidelines.
- 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
- Purchase price up to $195,700.
- Assistance up to $10,000
- No monthly repayment; forgiven over five years.
- Existing homes only.
- Borrowers must meet HOME-income guidelines.
- 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).
More about down payment and closing costs
- No liquid asset review and no limit on borrower reserves for Regular DAP.
- Borrowers may retain two months’ house payments in reserve while using available funds first before looking for any form of HOME DAP assistance.
- Specific credit underwriting standards may apply to down payment programs.