Home-buying program to assist residents in SOAR region with 1% fixed rate loans

For low- to moderate-income home buyers

MONTICELLO, Ky. (June 19, 2015) — Lt. Gov. Crit Luallen today announced a special 1 percent financing program to make buying a home more affordable for residents in the 54-county SOAR region.

houseAs part of the program, Kentucky Housing Corp. (KHC), the state’s housing finance agency, is making available $6 million in loans at a 1 percent, fixed rate for low- to moderate-income home buyers in the SOAR region.

SOAR was established in 2013 by Gov. Steve Beshear and Rep. Hal Rogers to address the significant challenges confronting Appalachian Kentucky. Its mission is to advance and promote a resilient and diverse eastern Kentucky economy by providing leadership, vision and collaborative partnerships to support innovative regional practices and enhance public and private investments.

Qualified home buyers can purchase a home using up to $6,000 in down payment assistance and lock into a fixed rate at 1 percent for 30 years, making owning a home more affordable.

First-time and repeat buyers can take advantage of this opportunity.

Qualifications include new construction homes that contain all Energy Star appliances or manufactured homes that are Energy Star certified, as energy efficient homes can reduce overall costs in maintaining the home.

How the program works:

  • To access the 1 percent KHC loan, a home buyer must apply through a KHC-partnering lender.
  • The KHC-approved lender will assist buyers with the qualifications throughout the application process.

Special Funding Program Qualifications:

  • Available to first-time and repeat home buyers, unless the property is located in Boyd, Greenup, or Laurel counties; borrower(s) must be a first-time home buyer in those counties.
  • New construction: stick-built units that have, at a minimum, all Energy Star appliances; manufactured homes that are Energy Star Certified.
  • Assistance through the Regular Down Payment Assistance Program (DAP), up to $6,000, and Affordable DAP, up to $4,500, is available.
  • 640 minimum credit score.
  • FHA, VA, RHS first mortgage options.
  • The interest rate is 1 percent and the lock-in period will be for 120 days with no additional fees.
  • Purchase price limit for all counties is $265,000.
  • Qualifying buyers must meet Mortgage Revenue Bond (MRB) income guidelines as they pertain to each county.
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