Anyone Used the State Agency Kentucky Housing Corp. to Purchase a Home? They seem to have great deals. (Somerset: for sale, mortgage broker)

[IrishTiltedKilt]

I am moving to Ky. from out of state, and came across the Kentucky Housing Corp. which is a state agency, that will help you to purchase a home in Ky.

I am wondering if anyone here has used them to help purchase a home, and if so, what has your experience been?

You still have to have a mortgage company, but they tell you which ones handle their loans, and you have to qualify under their terms. Some of the loans are government grants, which are forgiven after 5 or so years.

You can even purchase a home with no down if you qualify, and the loan approval is good for anywhere in the state.

Would love to hear from anyone who has used this gov. agency, their experience and thoughts.

[missymomof3]

I have. I used KHC to buy my house I am in now and I am very pleased with them.

[Kilted_Son]

I need to look at the KHC as an option, besides, I have insanely good credit, & a VA home loan guarantee. Would I have a decent chance of getting into a nice place?
I continue to hear great things aout Kentucky. I have a lot out here in SoCal, but again, it is becoming 3rd world out here. I would like to hear a bit about the process is & what it is they ask for.

Kilted_Son, Out.

[Spotted1]

Sorry, that's a new one to me. Depending on your income and the area you're moving to though, there are USDA Rural Development loans for purchasing homes up for grabs. I'm going through that process. One thing I do know about KHC is that the purchase is made possible via MRBs. So if you're looking to claim the first time home buyer tax credit/loan on your taxes for the purchase, you won't be able to claim that if you use a MRB program like the KHC.

[pacalady]

Would love to learn more about the USDA Rural Development loans as we are wanting to move to KY to start an organic farm with fresh produce for sale etc. We have to sell our farm in Idaho first, but are on the look-out for a place in KY where we can be self sustaining.

Thanks for any help with information or links we can research!

[SGT]

I'm another who has a loan through KHC, and I have no complaints with them, though the mortgage broker is a different story. I was quoted a certain monthly payment that turned out to be about $100 less than it should have been. If I had it to do over, I would have contacted someone at KHC to confirm that the Good Faith Estimate was written-up correctly.

One interesting thing I found out when I ran a credit report a couple of months ago--my mortgage is technically owned by Freddie Mac, not KHC. No one ever informed me of that, though I'm not one of those people who care who owns my mortgage as long as there aren't any changes in the original agreement.

KHC, though, continues to service the mortgage.

[lotusblossom02]

I have a loan through KHC as well. Interesting, SGT. On our credit report, it says Kentucky Housing, not Freddie Mac. I wonder if that had to do with who was funding it at the time. We purchased our home Jan. of 2005. No complaints, just a lot of hoops to jump through, but obviously well worth it. If you don't have 20% down and have to pay PMI, it is significantly less than a conventional loan. If you qualify, definitely do it would be my suggestion.

[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.

[IrishTiltedKilt]

I have found that alot of banks and mortgage companies are not familiar with the offerings of loans through Kentucky Housing Corp. I have my mortgage company in Somerset, but when I was looking in Mayfield, they knew nothing about loans through Ky. Housing Corp., and the realtor told me I could get a good loan like the one I had through U.S. Bank. Wrong! I had him talk to my mortgage guy and he learned something new! Don't assume that realtors know about these loans.....I speak from experience. Realtors like for you to use their lending companies......but these loans are good anywhere in Ky. even if your mortgage guy is in Somerset! I was told that Ky. Housing Corp. always holds onto the loan, never sells it to someone else. Anyone know what makes Kentucky loan rates go up so much ???? My loan rate has gone up 1 point in the past 30 days, that is crazy. I now check the rate every day.....with the economy the way it is, you think it would stay lower....go figure....6.5% today.

[missymomof3]

KHC has a website and has a list of approved lenders and properties for sale. Good luck!