Hi!

I had answered your question regarding closing costs the other day, but wanted to make you aware of the information below as well. HUD also has something in the works for the $8000.00 tax credit possibly being used for down payment and/or closing costs, but this is not confirmed information as the details have not been released as of this writing. I live in the Burlington area. Please contact me if you have other questions and I will be happy to help. Thanks again and Good Luck!

INFORMATION:

Governor Beshear announces help for first-time home buyers



Many states have set up special programs to help potential first-time homebuyers overcome the obstacles in buying their first home. The Kentucky Association of REALTORS would like to inform its members of a special initiative in Kentucky, announced by Governor Steve Beshear yesterday.

On April 22, 2009 Governor Steve Beshear announced a special initiative by the Kentucky Housing Corporation to offer up to 4,500 for down payment and closing costs for first-time home buyers who obtain a KHC home loan. The program will begin on May 1, 2009 and continue through Nov. 30, 2009. To view the press release, click here or continue reading the information below.

The First Home Advantage Program provides a second mortgage with principal and interest payments deferred until July 1, 2010 for KHC-approved, first-time home buyers.

“For many first-time home buyers, the biggest barrier to homeownership is the ability to pay upfront expenses, such as the down payment and closing costs,” said Gov. Beshear. “The innovative First Home Advantage Program will not only help qualified Kentucky home buyers overcome this barrier and realize their dream of owning a home, it will hopefully reinvigorate the housing market help get our economy moving in the right direction.”

The First Home Advantage Program offers a 10-year loan that defers payment with a zero percent interest rate until July 1, 2010. After the initial deferment period, the loan will fully amortize over ten years at the rate of 6 percent. If the borrower pays off the loan before July 1, 2010, KHC will forgive $300 of the principal balance.

The American Recovery and Reinvestment Act of 2009, signed into law by President Barack Obama on February 17, 2009, provides first-time home buyers with an $8,000 tax credit. After purchasing their home, home buyers have the opportunity to file for the housing tax credit provided by the stimulus on their 2009 tax returns and use the tax credit for the repayment of the First Home Advantage Program loan to take full advantage of the prepayment incentive.

“We want to do everything we can to help Kentucky homeowners purchase their new homes,” said Richard L. McQuady, chief executive officer of KHC. “The First Home Advantage Program allows home buyers to take advantage of every opportunity available to them in these difficult times.”

In order for home buyers to qualify for this program, they must obtain a KHC first mortgage through a KHC-approved lender, be a first-time home buyer, meet KHC income and purchase price guidelines, and have a 620 minimum credit score.

There are some new loans around the corner, but I would suggest you get in touch with several different lenders or mortgage brokers before making any decisions as they will have some idea about these new loans and their availability. I have at least two or three that I work with on a regular basis, because each of my clients have different needs and personalities, so I think it is best to go with someone your comfortable with first and foremost. FYI: Banks will have just their programs that they work with while a mortgage broker will have access to 99% of the bank loans and will search for the best interest rate and type of loan to meet your needs, usually obtaining a lower rate for you than the bank may offer.

Let me know if you have further questions or if you need some names of brokers/lenders who have helped previous clients of mine. GOOD LUCK!

Thomas,

I don't know of a lender that does that, but what may work for you is the Down Payment Assistance Program through Kentucky Housing, which would prevent you from having to come up with the down payment up front. To cover the closing costs, you can often roll those into the loan, which means you would likely only need to come up with about $300 up front for an inspection.

I can put you in touch with a lender who works extensively with KY Housing and all their programs. Feel free to contact me.

Sincerely,

Sharon Roark
Keller Williams Bluegrass
859-433-3676

No, BUT.....you can have the Seller pay for the closing costs or you can get a grant possibly.

Make sure you use a smart real estate agent and mortgage person who can guide you through the process.