Understanding Down Payment Assistance Options
Kentucky homebuyers have many options when it comes to choosing a mortgage. Buyers who have a down payment ready to go may have seemingly a world of choices, but even buyers who need some assistance will have opportunities. We have put together a brief guide to two common forms of down payment assistance—so you can decide if it could be the best solution for you.
- Regular Down payment Assistance Program (DAP) – This program is available for new homes with a purchase price of up to $294,000 or a secondary market price of up to $258,690. The assistance comes in the form of up to $6,000 that is repayable at 5.5 percent interest rate. Regular DAP is a ten-year loan and is available to most first mortgage loan recipients.
- Affordable Down payment Assistance Program (DAP) – The purchase price for the affordable DAP is the same as that for the regular down payment assistant program. However, the amount that is available for borrowing is only $4,500. The interest rate is much lower at only 1%, once again repayable over a 10-year period. The difference between the affordable and regular down payment programs comes in who qualifies. This version of the program requires qualification based on income limits.
There have been other assistance programs in the past, including the popular HHF (hardest hit fund). However, this version is not currently available for qualification for anyone.
No matter if you plan to take advantage of a down payment assistance program, or you will be utilizing savings to pay your down payment, it is vital that you have expert assistance on your side. Call or contact us at Liberty Financial and let us help make the best decisions as you work towards purchasing the place you will call home.