- The lender must use the payment reported on the credit report for each student loan if the reported payment is greater than the threshold payment calculation above, OR
- If the payment reported on the credit report is less than the threshold payment calculation above, the loan file must contain a statement from the student loan servicer that reflects the actual loan terms and payment information for each student loan. The statement must be dated within 60 days of the loan closing and may be an electronic copy from the student loan servicer’s website or a printed statement provided by the student loan servicer. It is the lender’s discretion as to whether the credit report should be supplemented with this information.
Why are they so popular?
be best for me? Why?
If so, how much will it cost, and how long will it
be required. (NOTE: Private mortgage insurance
is usually required if your down payment is less than
20%. However, most lenders will let you discontinue
PMI when you’ve acquired a certain amount of equity
by paying down the loan.)
(in other words, the time that the quoted interest
rate will be honored)? Will I be able to obtain a
lower rate if it drops during this time period?
for prepaying the loan?
- The funds are for eligible first time home buyers or for those who have not owned a home in the previous 3 years
- The program is a 2nd mortgage down payment assistance loan up to $10,000, 0% interest rate, forgivable second mortgage loan with a five-year term
- There is no monthly payment on the down payment assistance loan and 1/5th of the loan is forgiven for 5 years and at that point the loan is fully forgiven
- The property must remain as your primary residence for those 5 years
- The down payment assistance loan can be used to cover your closing costs and down payment
- Max purchase price $283,900
- Max income for person or persons on the loan in Jefferson County is $117,250
- The down payment assistance loan must be used in conjunction with KY Housing first mortgage program (conventional or FHA)
- Minimum 640 credit score to be eligible but we can generally provide advice how to improve your score to that level if needed
- The property (new or existing) must be located in one of these four counties:
- Other counties are not eligible for this specific program but there is a down payment assistance loan for other counties
Senior Loan Officer