ZERO DOWN HOME LOANS IN KENTUCKY
There are a few programs that feature zero down payment in Kentucky For Home buyers: USDA and VA. USDA is typically for rural areas, and VA is for military veterans. Lastly Kentucky Housing with the Down Payment Assistance Program of $6,000 and the $5000 Welcome Home Grant.
I’ve included some info on each for you on your home journey to buy a home in Kentucky!
USDA Loans
USDA loans are backed through the Rural Housing Division of the U.S. Dept. of Agriculture. They are available to millions of eligible primary home buyers with low to moderate incomes or scarce funds for down payments.
Features, benefits and things you need to know:
Zero Down - No down payment is required for USDA loans. Thirty-year, fixed-rate loans with no pre-payment penalty are the norm. Rates are very competitive with conventional loans.
Eligible Property - These loans are limited to "rural" areas, though you might be surprised by some of the suburbs of major metropolitan areas that qualify as rural.
Homes should be modest in size and cost and constructed per local codes and regulations.
Eligible Borrowers - Funds are available for qualified borrowers who earn up to 115% of the area median income.
Even candidates who have had past credit issues with late pays, bankruptcies or foreclosure may be eligible. Borrower's income must support the proposed payments and meet the program requirements for approval. Primary occupancy is required. This program is not for investment properties.
Benefits - Minimum cash is needed to close. The USDA Guarantee Fee and some eligible closing costs may be financed. Gift money, grant money and seller contributions are allowed.
VA Loans
Veteran's Administration or "VA" loans are available for active, non-active and retired Army, Air Force, Marine, Navy, National Guard and Coast Guard vets who meet the established service requirements.
100% financing/No down payment
No monthly mortgage insurance (PMI)
Gift funds acceptable for closing costs
No cash reserve requirements
A variety of terms or loan types available
Available for purchase and refinance
Reduced costs for disabled veterans
Seller can pay for closing costs
Seller pays for any required repairs
No pre-payment penalty
No minimum credit score 2 years removed from bankruptcy or foreclosures
To determine your ability to participate in this program, just provide your Certificate of Eligibility (COE) or your Discharge/Separation form (DD214). If you do not have your COE, you can request one using form 26-1880.
Kentucky Down Payment Assistance Programs
From first-time buyers to current homeowners, many state, county and local housing agencies offer affordable loan programs with Down Payment Assistance (DPA), subject to availability of funds and credit qualifying.
Down payment assistance can vary with single products or sometimes can be a combination of products such as Mortgage Credit Certificates (MCC), Grants, DPA’s along with closing cost assistance and low interest rates and fees that can help individuals and families become successful homeowners.
All borrowers must qualify for an underlying mortgage product according to the Housing Finance Agency authority (FHA, VA, USDA or Conventional). Housing loan programs are then layered on top to provide additional benefits. If eligible, the borrower can also add a down payment and closing cost assistance to their loan according to individual program guidelines.
What state are you in? I assume Kentucky? I will help you gather more information if this is something you want to look into. The general terms are below:
KHC 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 need.
