Anyone Used the State Agency Kentucky Housing Corp. to Purchase a Home? They seem to have great deals.

[blokoto]

is there a fha/khc loan DAP

[blokoto]

Originally Posted by LEXpert

I think KHC sells some of their loans and keeps some. As a realtor, I have found that most mortgage people don't know the details of these loans. Call KHC directly for questions. I had a client that wanted a carpet allowance on the contract and was doing a conventional KHC loan. Their loan officer told them you can't have a carpet allowance with a KHC loan. Turns out, it was true ONLY if they were doing an FHA KHC loan! How did we find out? I called KHC, then called to tell the mortgage guy.

can you do a loan fha/khc at the same time....

[lexingtony]

Yes, you can get a FHA-insured loan through KHC. There are different DAP programs available, some are targeted toward very low-income (those are usually forgiven loans). For more moderate income folks, the DAP is provided as a 10-year amortized loan.

For the record, KHC never sells any of its loans. It retains and services all of its loans for the life of the loan.

[IrishTiltedKilt]

I was going to get a housing loan through Ky Housing Corp., however, I stumbled upon a loan through US Bank, with a lower interest rate, and you only have to put $1000. down. It is called the American Dream Loan. You should check it out, the extra I am saving on my interest rate is helping because the house I am looking at is in an old flood plain, and I am required by FEMA to have flood insurance. I still think the Ky Housing Corp is a great deal, too!!!!

[lexingtony]

Just curious -- what rate did you lock in? I know KHC rates have dropped recently, but if you were able to find a better deal, that's great!

[IrishTiltedKilt]

Hi Lexingtony:
I have a 5% interest rate...you are right, I just checked the KHC rates, and the RHS loan with no points is down to 5.5%-it has really dropped, from the spike it took in late January and Feb. That is great....if it goes down anymore, I will have to re-think the American Dream loan, it has less closing costs than KHC-but if the rate is the same, I like the idea of part of the mortgage being forgiven after five years...
I haven't locked in my rate yet, I offered on a house and it was accepted. But my home inspection came back with problems, so I opted out of the deal. The owner's have since contacted me, and if they can fix all the issues, I am considering purchasing the home, as the area is really good, the house is very nice and sturdy, and I like the local people I have met and become friends with. Right now I am in the process of nailing down exactly what the owner is going to do regarding the house and if I decide to go ahead with it, my home inspector will be going back out to check and see if the issues were addressed correctly and well, or not, before I lock in a rate on my loan-and complete the deal. As I go, I will keep checking the KHC rates, Kentucky is a great state to offer this option, I wish all states would do this!!!!!

[lexingtony]

ITK,

You're right, 5.5% on a 0-point RHS, 5.125% with 1 point.

U.S. Bank is an approved KHC lender, so you might ask your loan officer to do a comparison, just to make sure you're getting the best deal. I'm not trying to steer you toward a KHC loan, but it does help to see the loan products side-by-side and compare fees, required MI and upfront costs. He/she should be able to provide you with a Good Faith Estimate (GFE) on both loan products.

If I can be of any help to you as you continue your purchase and plan your move to Kentucky, please don't hesitate to contact me. I'm not currently a "real estate professional" (i.e., realtor or bank loan officer), but I used to be a loan officer up until a few years ago.

Good luck -- I hope it all works out for you!

[kymbe]

I am a realtor in louisville and have had many buyers use khc with no problems.