The Kentucky Housing Corporation (KHC) offers down payment assistance to eligible homebuyers primarily through which type of program?
Correct Answer
B) Regular Mortgage Program with down payment assistance in the form of a second mortgage loan
The Kentucky Housing Corporation (KHC) is the state's housing finance agency and offers the Regular Mortgage Program, which pairs a first mortgage with down payment assistance provided as a second mortgage loan. This helps eligible low-to-moderate income Kentucky homebuyers cover down payment and closing costs. KHC programs are a key Kentucky-specific financing resource that real estate licensees should understand.
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Related Concepts
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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