Property Q&A in Louisville>Question Details

Zippy, Home Buyer in Louisville, KY

What is the minimum payment required on a home these days ??

Asked by Zippy, Louisville, KY Tue Nov 1, 2011

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The question can be interpreted several ways. If you're asking about the minimum down payment, FHA requires 3.5% of the sales price. So on a $100,000 home you have to have a minimum down payment of $3500. If you're asking what the and him him loan amount that a lending institution will loan, that varies, but typically it $30-$50,000.
13 votes Thank Flag Link Tue Nov 1, 2011
Down payment Assistance Program (DAP)

1. Make sure the property is existing (previously occupied) and below the purchase price
limit of $195,700. If not, HOME DAP is eliminated. Proceed to question 3.

2. To ensure HOME DAP eligibility, ensure the following requirements are met:
• Household income below the HOME DAP income limits, available in the MRB
Program Guide, page 10.
• Borrower requires a minimum of $1,000 assistance, up to a max of $4,500, based on
need. Must use their own liquid funds in excess of two months’ PITI before they
look to HOME DAP.
• Must go maximum allowed LTV on the first mortgage.
• Property must pass HQS inspection (Lead Paint).
• Cannot be used in conjunction with REO properties or FHA 203K streamline
If all of these are met, you must determine how much HOME DAP can be accessed.
This is total cash needed to close, minus seller concessions, minus borrower funds in
excess of two months’ PITI. Whatever remains, rounded to the nearest $100, is the
HOME DAP loan amount.

3. Does the borrower or property meet one of the three Neighborhood DAP qualifiers?
• Is the property being purchased as an REO, foreclosure, bank-owned, or
short sale property?
• Has the property been marketed for six months or more?
• Has the borrower experienced a foreclosure, short sale, or deed-in-lieu in the
past and now credit qualifies?
If yes to any of these, the borrower qualifies for the $10,000 Neighborhood DAP.
Funds can be used toward the down payment or for closing costs and prepaids. Loan is
amortized over 30 years at 1 percent interest rate. The borrower must qualify with
second mortgage payment. If not, proceed to Regular DAP in question 4.

4. Borrower is eligible for Regular DAP up to $6,000 in $100 increments with a minimum
$500 loan amount. Regular DAP is amortized over ten years at 6 percent. Must go to
maximum LTV allowed on first mortgage amount. Borrower must qualify with second
mortgage payment.
0 votes Thank Flag Link Sun May 5, 2013
FHA requires 3.5% so the downpayment on a home priced at $117,900 would be $4126.50. However, there are several down payment assistance programs currently available through KHC (Kentucky Housing Commission) and area lenders. They are all dependent on different criteria such as income, credit score, etc. I am KHC certified and would be more than happy to work with you to help you find the best option and answer any questions or concerns you may have. You can reach me at 502-500-7003 or email me directly at
0 votes Thank Flag Link Tue Nov 1, 2011
There are several differnet programs we are able to use with KHC. If structured right and the required credit score of 640 it is possiable to purchase with no money. If score is below 640 you may still have options worst case would be 3.5% down
0 votes Thank Flag Link Tue Nov 1, 2011
The minimum down payment on an FHA loan is 3.5%, however, there are several down payment assistance programs in our area that can help cover the entire amount.
0 votes Thank Flag Link Tue Nov 1, 2011
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