Zero Down Home Mortgages Kentucky 

The Federal Housing Administration (FHA) and Kentucky Housing Corporation (KHC)  realizes that obtaining the money for mortgages, closing costs and down payments are a major stumbling block for most mortgages borrowers.  Therefore, KHC has  developed a DAP loan, which is a mortgages Downpayment  Assistant Program. 

The DAP loan can either be a soft-second grant or a seven year loan at an interest rate of 6.00%, depending on your income.  The way that the program works is that they will either give you or loan you the difference between what you have and what you need for closing up to a maximum of $4,500.

If your income is below the income guidelines for your county, this money is forgiven over a five year period of time.

If not, then you will repay it at an interest rate of 6.00% for seven years.  This monthly payment is approximately $65 if you borrow the maximum amount.  The terms of your DAP loan are minimal and easily affordable.  If you have to borrow the money on the DAP loan, I always remind my borrowers that there is no prepayment penalty on this mortgage and next year you will more than likely get a larger tax refund because you own a home and then you can use that extra tax refund to pay this loan off.  

Also, should you need more than $4,500 to cover your downpayment, closing costs, and escrow, you can negotiate with the seller to pay the additional amount.  With the combination of the DAP loan and the seller's contributions, you will need no cash to close the loan.

This is a wonderful program and I hope that you take advantage of this.  Please call me and I would be more than happy to help you own a home. 

Nancy Kaufman Thompson