Buying your first home can be stressful, from choosing the right home to finding the money to finance, you can end up stressing far more than it is worth. There are some incentives and first time home buyer programs, however, that can make buying your first Kentucky home a breeze. These special loans and programs are in place to make the home buying process easier and more enjoyable so that you can get the home you want without going bankrupt.
Retired Military, Why Not Consider FHA/VA Loans?
These loans are available across the country but are particularly popular in Kentucky as an option for those that may not qualify for a traditional loan. An FHA loan is a loan that allows the least down payment possible with a rate of about 3.5% of the home value needed to finance the loan. They also require that the credit score of the borrower be around 600 with no bankruptcies or foreclosures within the past 3 years. This also allows for a much lower monthly mortgage payment at around 30% of what you make each month. FHA loans are a great alternative for those that may not have a large sum to pay down on their first home and that may not have the best credit score to get a great mortgage rate. VA loans are reserved for veteran’s and allow for a loan to be given with no down payment for those borrowers that have a VA certificate of eligibility. Lenders generally want a credit score of around 620 for VA loans and can offer great rates for those veterans that take these loans. Both of these loans are government loans making them perfect for first time home buyers.
Moving to a Rural Area?
USDA/Rural Housing Loans- these are going to be available for those individuals that are buying homes in rural areas of the state. Since Kentucky does have a great deal of rural area, this is great for the state and for those that are not buying homes within the larger cities or more populated areas. This type of loan does not require a down payment and are going to be subject to the property eligibility requirements of the area in which you are buying the home. 640 is the base line for the credit score that is required for this loan. This is a wonderful loan for those that are buying in a rural area and that need a bit of help because they may not have the down payment that they need to get their rates down.
No Way to Get A Down Payment?
Kentucky Housing Corp or KHC- this is an agency that helps those buyers that do not have access to other means to buy a home without a down payment. This is going to be a program that is highly beneficial to those that are buying in urban areas and may not be able to use things like the USDA loans. The Down Payment Assistance Program for KY First Time Home Buyers has 100% financing as well. The Down Payment Assistance Program requires that the buyer have 3.5% of the down payment in order to get the assistance loan that falls from $4500 to $6000. These loans are typically reserved for those buyers that do not have a large down payment and they often carry an interest rate of around 5%. This type of loan is also repayable over a ten year period so it is even more affordable and perfect for first time homebuyers. The Kentucky Housing Corp program offers funding for first time home buyers and allows for homes up to $294,000 to be purchased.
Why Not Try the MRB Loan Program?
This loan program requires that buyers meet the annual income guidelines for their county and family size. They also require that the residence being bought it less than $258,000 that are eligible for a 30 year fixed rate mortgage. This is a wonderful loan option for first time buyers as the loans included in the coverage help buyers afford a new home. Some different loan types that fit this program are Conventional No Mortgage Insurance Program, the Conventional with MI, and RHS loans.
Hear of the Kentucky Housing Commission Tax Credit Program?
This program is funded through the Kentucky Housing Commission and allows buyers to lower their federal taxes up to 25% or $2,000, whichever tends to be higher. This is given through the lifetime of the loan and can help lower your taxes greatly over the lifetime of your loan. Those that sell their home within the first nine years of ownership may be required to pay back this money to the government. In order to qualify for this tax credit, you have to be a first time homebuyer and meet the requirements that are set forth such as income, purchase price, and credit requirements. You are also required to pay a $500 MCC fee.
Buying your first home should be exciting and fulfilling and worrying about financing and down payments is no way to go. These programs and incentives are built to help buyers get their first home easily and quickly so that they can start living in their new home. These programs are put in place to help first time buyers get a home they love without having to worry about where the money is coming from or how they are going to afford the down payment on the home of their dreams.
2 Point Highlight
There are some incentives and first time home buyer programs, however, that can make buying your first Kentucky home a breeze.
These special loans and programs are in place to make the home buying process easier and more enjoyable so that you can get the home you want without going bankrupt.
