Covington Homebuyer Assistance Loans Guidelines
Under this program, households which meet income, credit, and other requirements may obtain zero-interest, deferred/ forgivable loans to assist with purchasing an owner occupied home. The loans can be used to cover the lender required down payment and usual, reasonable and customary settlement charges to make purchase affordable. The loan will be forgiven if the owner occupies the home as their principal residence for 5 years from the date of purchase. The City encourages applicants interested in buying homes that need renovation to obtain purchase/rehab loans from their lenders, utilizing products such as the FHA 203(K) program.
- Borrower’s gross annual household income must be at or below 80% of the Area Median Income ($39,600 for a single person, $56,550 for a 4 person household). Borrowers must attend a HUD approved homebuyer education course.
- All properties must be one to two units, owner-occupied or vacant, and meet minimum local housing standards.
- Up to $5,000 to cover the lender required down payment and customary settlement charges to the borrower.
- Interest Rate/Loan Term: 0%, 5 years
- Monthly Payment Amount: No monthly payments. The loan will be forgiven if the owner occupies the home as their principal residence for 5 years from the date of purchase.
For more information about this program, please contact:
John Hammons at 859.292.2105, firstname.lastname@example.org