A Complete Guide to Closing Costs

A Complete Guide to Closing Costs.

via A Complete Guide to Closing Costs.

Five different types of Mortgage Loans avaialbe for first-time homebuyers in Kentucky

1) FHA–  3.5% of the purchase price is required for a down payment. The 3.5% down has to come from buyer funds or a buyer’s family member as a gift.

2)  VA- No money down required.  You have to be a veteran, spouse of deceased veteran, or active duty military to qualify for a VA loan.

3) USDA (aka Rural Housing)- No money down required.  You have to purchase a home outside of Jefferson County and buy in an approved USDA county.  Typically, most of the counties that surround Jefferson County are approved for USDA.

4) Conventional- As little as 5% down payment is required.  20% down payment might be required if the borrower/buyer has a lower credit score.  When putting personal money down along with gift money on a conventional loan, the buyer must have 5% personal funds verified before any gift funds can be received.  Gift funds can be used on top of the 5% personal funds to increase down payment or contribute to closing costs.  The only exception to this rule with a conventional loan would be if the buyer is getting a 20% gift. If the buyer receives a 20% gift they would not be required to provide 5% of their own funds.

5) KHC or Kentucky Housing-

Down Payment and Closing Costs Assistance

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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 need.

Regular DAP

  • Purchase price up to $243,000.
  • Assistance in the form of a loan up to $6,000 in $100 increments.
  • Repayable over a ten-year term at 5.50 percent.  A DAP of $6,000 over ten years at 5.50 percent interest would equal a payment of $65.12.
  • Available to all KHC first-mortgage loan recipients.


  • Purchase price up to $243,000.
  • Assistance up to $4,500
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable DAP Household Income Limits.

More about down payment and closing costs

  • No liquid asset review and no limit on borrower reserves.
  • Specific credit underwriting standards may apply to down payment programs.


Kentucky FHA HUD Homes for $100 Down

Kentucky HUD Homes for $100 Down


Kentucky HUD Homes for $100 Down

Call today for your free-preapproval and credit report 502-905-3708 or email kentukcyloan@gmail.com

$100 HUD Homes


$100 HUD Home Program

This Program allows people to take advantage of the Kentucky buyer‘s market, by purchasing a home owned byKentukcy  HUD with only a hundred dollars. Kentukcy FHA’s standard down payment requirement is waived. Closing costs, homeowners insurance, property taxes, and even repairs can all be financed using this special federal purchase-money loan program. The loan amount may go up to 110% of the home’s “as is” appraised value. The appraisal is provided by HUD, which is another benefit of this program. The buyer doesn’t have to pay for an appraisal, and there’s virtually no chance the appraisal will be challenged in underwriting.

HUD pays up to a 5% sales commission, which is not split with any local listing brokers. Sales commissions are earned only when representing buyers.

Kentukcy HUD Homes result from foreclosures on homes secured by Kentukcy FHA-insured mortgages.  Kentucky HUD homes are popular with bargain-minded investors, but for the first 10 days they’re available exclusively to bidders who will be owner-occupants. In other words, anyone who wants to buy a Kentukcy HUD home as their new primary residence has priority and gets the first chance to take advantage of these deals. The inventory of Kentukcy HUD homes changes frequently and is growing as foreclosures become more widespread.

Before making an offer on aKentukcy  HUD home, the buyer must be pre-approved for the necessary loan amount. A pre-qualification letter is not acceptable. Prior to submitting an offer on a HUD home, the lender must take an official loan application, approve supporting documents, and issue a preliminary loan commitment.

Like other government loans, Kentukcy FHA loans can only be used to purchase a primary residence, not second homes and investment properties. But despite what some people think, Kentucky FHA loans are not limited to first-time home buyers or low-income borrowers

Free credit report and Free pre-approvals within 1 hour..Call today at 502-905-3708 or email at kentuckyloan@gmail.com NMLS#5791