Housing Development Alliance - Homeownership Program

What is Housing Development Alliance - Homeownership Program?

Housing Development Alliance - Homeownership Program is a first mortgage for homebuyers in Hazard, Kentucky, administered by Housing Development Alliance, Inc. (HDA).

• HDA's income-based Homeownership Program helps low-income families in Breathitt, Knott, Leslie, and Perry Counties become homeowners via subsidized mortgages on newly constructed Energy Star homes. No cash down payment - 150 hours of sweat equity instead. Average interest paid 1%-3% (varies by funding source). Payments structured at ~20%-30% of gross income; land purchase can be included. ~400 families helped to date.
• No cash down payment.
• Subsidized mortgage interest (avg 1%-3%).
• Energy Star new homes.
• Land purchase can be included.
• Free certified housing and credit counseling.
• 150 sweat-equity hours.

Do you have to pay it back?

Housing Development Alliance - Homeownership Program is a first mortgage and is repaid under the terms set by Housing Development Alliance, Inc. (HDA).

• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Housing Development Alliance - Homeownership Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

Housing Development Alliance - Homeownership Program limits household income to 80% of the area median income, which varies by county and household size.

• Low-income households (generally <=80% AMI). Minimum gross monthly income $1,750 (Perry/Knott) or $1,900 (Leslie/Breathitt). Can assist annual incomes ~$17,000. Ceiling varies by funding source.
• The limit applies to total household income, not only the borrower&rsquo;s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Housing Development Alliance - Homeownership Program can be used for Single Family.

• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Housing Development Alliance - Homeownership Program serves buyers purchasing in Hazard, Kentucky.

How do you apply?

Applications for Housing Development Alliance - Homeownership Program go through Housing Development Alliance, Inc. (HDA), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program before funds are reserved.

2. 2

   Contact Housing Development Alliance, Inc. (HDA) to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.