Lt. Gov. Crit Luallen announced a special 1 percent financing program to make buying a home more affordable for residents in the 54-county SOAR region.
“A home provides security, continuity, stability and a sense of pride. And beyond that, affordable housing plays a role in job creation and stimulating the economy,” Luallen said. “That’s why affordable housing remains one of Gov. Beshear’s top priorities, and why we expect this special financing program will have a significant impact in the region.”
Luallen made the announcement during an event in Monticello celebrating the 50th anniversary of the U.S. Department of Agriculture/ Rural Housing Service’s Mutual Self-Help program.
Under the special financing program, Kentucky Housing Corp., the state’s housing finance agency, is making available $6 million in loans at a 1 percent, fixed rate for low- to moderate-income home buyers in the SOAR region.
SOAR was established in 2013 by Gov. Steve Beshear and Congressman Hal Rogers to address the significant challenges confronting Appalachian Kentucky. Its mission is to advance and promote a resilient and diverse eastern Kentucky economy by providing leadership, vision and collaborative partnerships to support innovative regional practices and enhance public and private investments.
Qualified home buyers can purchase a home using up to $6,000 in down payment assistance and lock into a fixed rate at 1 percent for 30 years, making owning a home more affordable.
First-time and repeat buyers can take advantage of this opportunity.
Qualifications include new construction homes that contain all Energy Star appliances or manufactured homes that are Energy Star certified, as energy efficient homes can reduce overall costs in maintaining the home.
Rogers, who joined local officials in the celebration, said, “Affordable, energy efficient housing is an important component as we retool our efforts to improve the quality of life for the people of southern and eastern Kentucky. Coupled with new job opportunities, improvements in education and innovations in technology, we hope to transform the region for future generations so they will want to establish a family and a career here at home.”
KHC networks with many partners in the SOAR region that provide new construction, energy-efficient homes.
“Families can take advantage of a safe loan opportunity that provides stability of a 1 percent fixed interest rate for the life of the loan,” said KHC Executive Director Kathryn Peters. “Down payment assistance also makes homeownership more affordable, and if the home is energy efficient, the costs of operating the home’s systems can be reduced.”
This program will strengthen affordability and sustainability of homeownership for Appalachian families.
Here’s how the program works:
· To access the 1 percent KHC loan, a home buyer must apply through a KHC-partnering lender.
· The KHC-approved lender will assist buyers with the qualifications throughout the application process.
Special Funding Program Qualifications:
· Available to first-time and repeat home buyers, unless the property is located in Boyd, Greenup, or Laurel counties; borrower(s) must be a first-time home buyer in those counties.
· New construction: stick-built units that have, at a minimum, all Energy Star appliances; manufactured homes that are Energy Star Certified.
· Assistance through the Regular Down Payment Assistance Program, up to $6,000, and Affordable DAP, up to $4,500, is available.
· 640 minimum credit score.
· FHA, VA, RHS first mortgage options.
· The interest rate is 1 percent and the lock-in period will be for 120 days with no additional fees.
· Purchase price limit for all counties is $265,000.
· Qualifying buyers must meet Mortgage Revenue Bond income guidelines as they pertain to each county.
KHC offers more information about mortgage loans and information about lending partners here.
From the Office of the Governor