In January of this year, Kentucky Housing Corporation (KHC) launched the Hardest Hit Fund Down payment Assistance Program (HHF DAP), which gave new homebuyers, in distressed counties, forgivable second mortgage. HHF DAP was only available in four of Kentucky’s counties, as deemed by the U.S. Department of Treasury, for being hardest hit with serious delinquency, negative equity, distressed sales, and foreclosures. The goal of this program was to reduce obstacles for homeownership and stabilize those local housing markets for families and their communities. That first launch of the program was successful, generating 559 loans, and so effective for home buyers in these counties that is being brought back for a second time.
As such, KHC is announcing a new round of HHF DAP, which provides first-time home buyers with $10,000 in down payment assistance. This product is only available with new reservations on or after Thursday, September 1, 2016.
HHF DAP Guidelines:
- $10,000, 0 percent interest, forgivable second mortgage loan with a five-year term.
- Property (new or existing) must be located in one of the four counties:
- Secondary Market Purchase Price and Income Limits apply.
- Borrower must be a first-time home buyer (no ownership interest in the last three years).
- Pre-purchase home buyer education required.
- Dodd-Frank Affidavit must be completed (will print with loan reservation).