Special 1 Percent, Fixed-Rate Financing Helped 60 Families Become Homeowners in the Appalachian Region
FRANKFORT, Ky. – October 8, 2015 – (RealEstateRama) — In June 2015, Kentucky Housing Corporation (KHC), Kentucky’s housing finance agency, and Lieutenant Governor Crit Luallen announced a special financing program (Program) to provide one percent, 30-year, fixed-rate mortgage loans for qualifying residents in the 54-county Shaping Our Appalachian Region (SOAR). The Program had two main goals: 1) to increase economic development and create jobs in the Appalachian region by stimulating housing growth; and 2) to make home buying more affordable for more residents in the SOAR.
Under the Program, KHC planned to provide $6 million in special financing, including down payment assistance, to make homeownership more affordable for low- to moderate-income buyers. By incorporating energy-efficient requirements for new construction homes or by replacing old appliances with ENERGY STAR products, the Program also aimed to reduce costs of home maintenance for the buyers.
Demand for the special financing was strong, and, as a result, KHC increased the funding it provided to $8.1 million, which resulted in 60 families in the SOAR becoming homeowners.
“The role of homeownership strengthens communities through economic growth. A home provides security, continuity, a sense of belonging, and a feeling of pride for families in those communities,” said KHC Executive Director Kathryn Peters. “KHC is proud to partner with the SOAR initiative by investing in quality housing solutions for families in the Appalachian region.”
Though funding for this Program is no longer available, KHC has other mortgage programs, including down payment assistance, which makes owning a home much more affordable.
KHC networks with many lending partners across the Commonwealth that provide KHC loans. First-time and repeat buyers, who have a credit score of 640 and higher, can take advantage of homeownership opportunities and get a 30-year, fixed-rate mortgage through KHC.
To learn more about mortgage loans and KHC’s partnering lenders, please visit www.kyhousing.org.
KHC also offers opportunities for homeowners to make their homes more energy efficient and comfortable through KY Home Performance with affordable loan options. For more information, visit www.KYHomePerformance.org.
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Kentucky Housing Corporation, the state housing finance agency, was created by the 1972 General Assembly to provide affordable housing opportunities. As a self-supporting, public corporation, Kentucky Housing offers lower-than-market rate home mortgages, housing production financing, homeownership education/counseling, rental assistance, housing rehabilitation and supportive housing programs for special needs populations.
Kentucky Housing Corporation prohibits discrimination based on race; color; religion; sex; national origin; sexual orientation; gender identity; ancestry; age; disability; or marital, familial, or veteran status.
