FRANKFORT, Ky. (Jan. 6, 2010)—Gov. Steve Beshear today announced that Kentucky Housing Corporation (KHC) will begin offering the lowest interest rates in its history thanks to President Obama’s Homeowner Affordability and Stability Plan.
“With housing industry troubles leading nearly every newscast and topping nearly every paper for the last year, it’s rare to find a positive point to focus on,” said Gov. Beshear. “Kentucky Housing Corporation is now offering positive housing news for Kentuckians.”
KHC’s rate for government loans (Federal Housing Administration, Veterans Administration and Rural Housing Service) are currently at 4.375 percent. Applicants with a 700 or better credit score who are not using KHC down payment assistance can receive a 4.125 percent rate. These are the lowest rates that KHC has ever offered, and they plan to help as many Kentuckians as possible achieve homeownership. KHC has a stated goal of helping 3,500 first-time home buyers and second-time home buyers in targeted counties acquire homes in 2010.
“KHC consistently works to help homeowners find ways to work through whatever barriers they face in acquiring a home,” said Richard L. McQuady, chief executive officer of KHC. “The federal government’s new Homeowner Affordability and Stability Plan will enable us to provide low-rate mortgages to help many more families.”
The Homeowner Affordability and Stability Plan, created by the Obama administration, is designed to stimulate and stabilize the U.S. housing market. The plan lowers the borrowing costs of housing finance agencies (HFAs) across the country, who in turn can offer very low mortgage rates to home buyers through KHC-approved lenders.
The new bond purchase program supports new lending by HFAs, which means HFAs can sell bonds easier, and get cash from the bonds they already have, thereby creating more funds to support home-mortgage loans. The Obama administration worked with the National Council for State Housing Agencies (NCSHA), the U.S. Treasury, Freddie Mac, and Fannie Mae to create the new bond purchase program, which was finalized in November 2009.
“Without the initiative started by President Obama, and the hard work from NCSHA, the U.S. Treasury, Freddie Mac, and Fannie Mae in creating a solid and sustainable plan, these rates would not be possible,” said Gov. Beshear. “We are grateful that the funds provided through this initiative will allow thousands of residents across the state to have a home of their own.”
To learn more about this and other options available to potential home buyers through KHC, visit www.kyhousing.org, or contact KHC’s Homeownership Department toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 291, or TTY 711.
*Courtesy of KHC
859-621-1276 / service@lexre.com
Lexington Real Estate Service's Blog 