First-Time Homebuyer Programs

The Welcome Home Program

Offers grants of up to $15,000 for honorably discharged veterans, surviving spouses of military personnel, and active-duty military homebuyers and up to $10,000 for all other homebuyers to fund down payment and closing costs for low- and moderate-income homebuyers. Welcome Home funds will be available for reservation on a first-come, first-served basis beginning on February 6, 2023 and again on July 6, 2023, and will remain available until all funds have been reserved. The Homebuyer must contribute at least $500 of their own funds towards down payment or closing cost. The grant does not have to be paid back so long as you stay in the home for 5 years; prorated if you sell before 5 years.  The property must be the homebuyer’s primary residence and there are income limits that apply.

KHC Down Payment Assistance Program

This is a down-payment assistance program that offers qualified first-time homebuyers purchasing a property in Kentucky a repayable loan for their down-payment assistance funds at a below market rate for 10 years – maximum DPA amount that can be provided is $10,000.  The property must be the homebuyer’s primary residence with a maximum purchase price up to $349,525. Household income restrictions apply.

Chenoa Fund

This is a nationwide DPA program that offers qualified first-time homebuyers 3.5 – 5% down-payment assistance on an FHA loan for the purchase of their new home.  This assistance may be applied to the down payment, closing costs, prepaid items, or any combination of the three. This assistance may be in the form of a repayable loan with a 10-year term or a forgivable loan with a 30-year term.

National Homebuyers Fund (NHF)

NHF provides down payment and/or closing cost assistance (DPA), up to 5% of the mortgage loan amount. NHF DPA is available in most U.S. states and qualifying guidelines are flexible. The assistance may be forgiven immediately, after a short period of years, or have repayment requirements, depending on the Program. FICO score requirements and allowable debt-to-income ratios are flexible. The program features higher than expected generous income limits.

VA (Veterans Affairs) or USDA (designated rural areas)

No money down loans based on qualifications.

Conventional

Minimum down payments of 3-5% depending on program and qualifications.  3% can be allowed if the borrower is a first-time homebuyer.  There are three conventional options: The Conventional 97 loan is a 3% down payment mortgage that works for first-time and repeat home buyers with no income limits.  The Fannie Mae HomeReady loan is a 3% down mortgage that helps new home buyers who meet income requirements and the Freddie Mac Home Possible loan is also a 3% down loan that works within specific income limits. The main difference between these programs is their target audience. The HomeReady and Home Possible programs are intended for low-income and moderate-income home buyers as well as intergenerational households. Both programs are available to first-time and repeat home buyers, although they’re generally geared more toward first timers. The conventional 97 loan has a wider appeal. It’s great for home buyers who have good credit but modest savings — or for buyers who want to make a small down payment, so their money is not tied up in real estate. With a conventional 97 loan, unlike HomeReady and Home Possible, there are no household income limits.

FHA

Minimum down payments of 3.5% for qualified borrowers. Low down payments, low closing cost and easy credit qualifying.

 

 

*This document is for informational purposes only and is not a guarantee of what you may be offered by a lender.  All the information was attained from lenders and their websites at the time of review, their programs and guidelines may change in the future.  Please do your own research as you are looking for mortgage information.

 

 

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