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First-time homebuyer programs

As a first-time home buyer in Louisville KY you have a lot of questions about the process of buying a home and how to get started. However, most buyers have the same questions.

"How much money do I need to buy a house?"

This is one of the most common questions most home buyers ask. They want to know how much money they will need in order to buy a home. Is it zero down, three-percent down, or twenty percent down?

Zero Down...

Keep in mind, there are still cost associated with buying a home when using a first-time homebuyer program that offers zero down. A few examples of additional expenses:

  • Home Inspection
  • Termite Inspection
  • Radon Inspection
  • Septic Inspection (if applicable)

Find Out if You Are Eligible

These programs are structured to help buyers who may not necessarily have enough money saved up to pay the full amount of a down payment. There is an income limit that varies state by state, you will need to speak with your loan advisor to determine eligibility. Also, some homebuyers don’t realize that they qualify as a first-time homebuyer because they have already owned a home in the past. If you haven’t owned a home in three years or more. You may also qualify for first time home buyer programs Louisville KY.

Learn More about Your Credit Score

Credit score iconA credit score is a reflection on how creditworthy you are as a borrower. This at times can be a barrier for you when applying for loans, credit cards, or even when trying to rent an apartment.

Lenders will use your score as a grading scale to decide if you are financially responsible for obtaining and carrying a mortgage. It is important that you focus on improving your score if needed or at least maintaining it before buying your first home.

First-time Homebuyer Programs

Before getting started with the process of buying your first house, you will need to figure out how you are going to find the money to buy the house. Do you some research to find out what mortgage will be best for you. There are many different programs available for first-time homebuyers here in the Louisville area and nationally.

National Programs Available

First time homebuyer - National programs iconTo help assist homebuyers and first time home buyers. The Federal Government has developed different home loan programs to give buyers an opportunity to purchase a home with little to no money down.

Not all programs are strictly for first-time homebuyers, you can ask your lender to find out what qualifying program will work best for you before looking at nearby homes for sale.

USDA Rural Housing Program

If you are looking to buy your first home outside of the Louisville metro area and move into a more rural area. The United States Department of Agriculture (USDA) offers mortgage assistant programs to help make it more affordable to buy a home in one of the surrounding counties outside of the Louisville area.

For qualifying homebuyers, you may be eligible for a USDA home loan that may require zero money down. This makes it more affordable and easier for you to buy your first home in Louisville.

The objective of these programs offered by USDA is to help and encourage economic growth in rural areas. And because USDA loans are guaranteed, lenders are more comfortable lending to buyers and are able to offer favorable rates. However, with no money down you have the cost of a mortgage insurance premium. This is not the same as PMI, where a monthly cost is paid by a buyer for an FHA loan.

State and Local Programs Available

First time homebuyer - Kentucky program iconEach state has different programs that are available for first-time homebuyers. Locally, the down payment assistance may vary as well. Just like the national programs - not all state and local programs are only for first-time homebuyers – to learn more you can ask your lender to find out what qualifying program will work best for you.

Kentucky Housing Corporation

When taking advantage of a local program that is available for first time home buyers you first must qualify. To meet these qualifications for an MRB KHC loan, you will have to certain requirements such as; your annual income will have to fall within the MRM income limitations (county specific). Ability to provide a down payment or at least the qualify for down payment assistance. Also, satisfactory credit history. The requirements may change or vary but a first-time buyer or repeat homeowner (if the property is in a Targeted County) can apply for a KHC loan.

List of additional KHC guidelines you may need to know.

  • Borrower must occupy the home within 60 days of closing and for the duration of the loan.
  • New or previously occupied detached, single-family home.
  • New or previously occupied condominium, townhouse, or attached unit in a planned unit development. (Check with the lender for eligible condominiums.)
  • New or previously occupied manufactured housing, single or double wide, permanently affixed to the foundation and taxed as real estate (must meet loan type's foundation requirements).
  • One-acre maximum on lot size unless acreage waiver is obtained. (MRB Only)

What Mortgage is Best for a First-time Homebuyer?

This is a tough question and the best answer for your situation could come from your local lender that can discuss and go over your options that may be able to help you save you thousands when buying your home. Before you get started on the journey as a first time homebuyer in Louisville KY you do not want to overlook any of the available programs that are out there.

Posted by Nathan Garrett on
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I would love to work with someone to try and buy a home soon. I have been working on my credit school and recently graduated from nursing school and began my career. thank you.

Posted by Kimberly Rogers on Wednesday, August 5th, 2020 at 8:19pm

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