| A Home Ownership NOW loan (NOW) offers low to moderate-income homebuyers in Bowling Green, KY four tiers of financial assistance depending upon the total household income. This is a second mortgage loan with a low monthly payment of $50. With one phone call and a few simple forms, you will be on your way to home ownership.
Geographic Eligibility:
The first mortgage must be a conforming conventional (fixed rate), VA or USDA Rural Development loan offered by an FHA-KY approved lender. The property must be located in zip codes: 42101, 42103 or 42104
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The home must be located in: Bowling Green, KY (in zip codes: 42101, 42103 or 42104)
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The home must be the buyer’s primary residence.
Requirements:
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All NOW loans are secured by a Promissory Note and a Second Mortgage, subordinated only to a first mortgage
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All borrowers are required to complete Homebuyer Education classes before closing. These classes are offered by KHC approved counseling agencies. Contact Melanie Lawrence at 270-791-5455 for assistance in locating the most convenient agency
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Borrower must complete a THF Borrower Application. Contact Melanie Lawrence for application.
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Borrower must contribute at least 1% of the sales price from their own funds to the purchase
- All borrowers must be at or below the area median income (AMI) for the tier.
Income Criteria:
(Effective 05/14/2010)
Tier 1 (60% of area media income)Your household gross (before take-out) income is at or below:
1 person:................. $22,700
2 people:................. $25,900
3 people:................. $29,100
4 people:................. $32,300
5 people:................. $34,900
6 people:................. $37,500
7 people:................. $40,100
8 people:................. $42,700
Tier 2 (80% of area median income)
Your household gross (before take-out) income is at or below:
1 person:................. $30,150
2 people:................. $34,450
3 people:................. $38,750
4 people:................. $43,050
5 people:................. $46,500
6 people:................. $49,950
7 people:................. $53,400
8 people:................. $56,850
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Clients can borrow up to $7000 for Closing Costs, Prepaids, and Down Payment Assistance
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The interest rate is 7%
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Loan will include a variable recording fee and a processing fee of $350.00
Tier 3 (100% of area median income)
Your household gross (before take-out) income is at or below:
1 person:................. $37,700
2 people:................. $43,100
3 people:................. $48,500
4 people:................. $53,800
5 people:................. $58,200
6 people:................. $62,500
7 people:................. $66,800
8 people:................. $71,100
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Clients can borrow up to $5000 for Closing Costs, Prepaids, and Down Payment Assistance
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The interest rate is 8%
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Loan will include a variable recording fee and a processing fee of $350
Tier 4 (120% of area median income)
Your household gross (before take-out) income is at or below:
1 person:................. $45,240
2 people:................. $51,720
3 people:................. $58,200
4 people:................. $64,560
5 people:................. $69,840
6 people:................. $75,000
7 people:................. $80,160
8 people:................. $85,320
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Clients can borrow up to $5000 for Closing Costs, Prepaids, and Down Payment Assistance
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The interest rate is 8%
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Loan will include a variable recording fee and a processing fee of $350.00
Enrollment:
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Interested borrowers should call THF at (270) 791-5455 for a list of homebuyer education agencies
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Borrower must complete a THF Borrower Application. Contact Melanie Lawrence at 270-791-5455 for application info.
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The Housing Fund cannot begin underwriting until we have received both a completed Borrower Application and Lender Loan package.
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THF will work with the client’s closing attorney to fund the loan and funds will be wired at the time of closing
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