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Did you hear the news? Kentucky Housing Corporation (KHC) announced a new Hardest Hit Fund Down payment Assistance Program (HHF DAP)! A total of $4 million will be available for new reservations beginning on Thursday, September 1, 2016, at 10 a.m., ET. If you follow KHC on Facebook, you heard about this yesterday. The HHF DAP will be available on a first-come, first-served basis, based on the completion of the first mortgage and HHF DAP reservations. HHF DAP Guidelines:
$10,000, 0 percent interest, forgivable second mortgage loan with a five-year term.
Not required to be at maximum LTV first mortgage amount.
No less than 81 percent LTV with conventional loans.
Property (new or existing) must be located in one of four counties:
Christian
Hardin
Jefferson
Kenton
Funding Source (Secondary or MRB) Purchase Price and Income Limits apply.
Can be used in conjunction with MRB Special Funding Program.
Borrower must be a first-time home buyer (no ownership interest in the last three years.)
Most recent three year federal tax returns or tax transcripts required.
Pre-purchase home buyer education required for all borrowers.
Dodd-Frank Certification must be completed (will print with loan reservation).
Must include a Terms and Conditions form (will print at closing with the HUD-1, Note, and Mortgage.)
This form highlights a few of the program requirements, such as occupancy/ownership status and forgiveness period.
The HHF DAP will utilize a GFE, TIL, and HUD-1, since it does not meet TRID regulations. These documents will be provided through KHC's Loan Reservation System. The HHF DAP will close in KHC's name and be funded by the lender. KHC's system will provide a Note and Mortgage in KHC's name. The lender is responsible to deliver all disclosures to the borrower(s) at time of origination and closing. KHC's Program Guides have been updated to reflect this new HHF DAP. Visit Down Payment Closing Cost Assistance page on the KHC website.
