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KHC Loan Programs

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KHC offers two different funding sources: Secondary Market and MRB.

SECONDARY MARKET FUNDING SOURCE

  • First-time and repeat homebuyers statewide
  • 30-year fixed interest rate
  • Principle residence ONLY
  • Purchase Price Limit:  $243,000
  • Borrower must meet KHC's Secondary Market Income Limits 

Conventional No Mortgage Insurance Program

  • Minimum credit score of 680
  • 3 percent down payment and no up-front or monthly mortgage insurance
  • All KHC DAPs applicable
  • No minimum borrower contribution
  • No reserves required

FHA

  • Insured by the Federal Housing Administration
  • 3.5 percent down payment
  • All KHC DAPs applicable
  • Upfront and monthly mortgage insurance
  • Minimum credit score of 640

Two FHA Refinance Options (Available Only Through Secondary Market)

  • Credit qualifying Streamline Refinance and Rate/Term Refinance
    • Insured by the Federal Housing Administration
    • Cash back to borrower not to exceed $500
    • Upfront and monthly mortgage insurance
    • Minimum credit score of 640 

VA

  • Guaranteed by the Veterans Administration for qualified military veterans
  • No down payment if the property appraises for the sale price or greater
  • All KHC DAPs applicable
  • Minimum credit score of 640
  • No monthly mortgage insurance payments

RHS

  • Guaranteed by Rural Housing Services (RHS)
  • Home must be located in a rural area as defined by RHS
  • No down payment if the property appraises for the sale price or greater
  • All KHC DAPs applicable
  • Upfront and monthly mortgage insurance
  • Minimum credit score of 640

Home Buyer Tax Credit

KHC's Home Buyer Tax Credit is available through Mortgage Credit Certificates (MCC), which reduce the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan.  MCCs are NOT mortgages.  They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment.  That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay.  The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan.  But an MCC gives you a tax credit of 25 percent (not to exceed $2,000).  You can still deduct the remaining 75 percent interest on your income taxes.  A tax credit is not the same as a tax deduction.  A tax deduction reduces the portion of your income that is taxed, so you pay less.  A tax credit is a direct, dollar for dollar reduction in the total tax you owe.  The MCC is effective for the life of the loan as long as you live in the home.  If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.  One-time fee of $500 or reduced to $200 if through KHC's Secondary Market First Mortgage Program.  Not valid with MRB loan programs.

Applying for a Kentucky Housing Corporation loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing Corporation loan.

 

MRB FUNDING SOURCE

  • 30-year fixed interest rate
  • Principle residence ONLY
  • Purchase price limit:  $243,000
  • Borrower must meet MRB income guidelines 
  • Some MRB KHC loans are subject to a federal recapture tax. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006.  The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional No Mortgage Insurance Program

  • Minimum credit score of 680
  • 3 percent down payment and no up-front or monthly mortgage insurance
  • All KHC DAPs applicable
  • No minimum borrower contribution
  • No reserves required

FHA

  • Insured by the Federal Housing Administration.
  • 3.5 percent down payment
  • All KHC DAPs applicable
  • Upfront and monthly mortgage insurance
  • Minimum credit score of 640.

VA

  • Guaranteed by the Veterans Administration for qualified military veterans
  • No down payment if the property appraises for the sale price or greater
  • All KHC DAPs applicable
  • Minimum credit score of 640
  • No monthly mortgage insurance payments

RHS

  • Guaranteed by Rural Housing Services (RHS)
  • Home must be located in a rural area as defined by RHS
  • No down payment if the property appraises for the sale price or greater
  • All KHC DAPs applicable
  • Upfront and monthly mortgage insurance
  • Minimum credit score of 640

MRB Special Funding

KHC has a limited funding amount for lower household income limits through MRB Special Funding that come available once a year-typcially in July.  The program is available on first-come, first-served basis.  At this time there are no funds available in this program.

 

 



 
 
For more information contact:

Homeownership Department
(502) 564-7630 ext. 291
(800) 633-8896 (KY only)
 

1231 Louisville Road, Frankfort, Kentucky 40601
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