Heart of Paducah Homebuyer Program

What is Heart of Paducah Homebuyer Program?

Heart of Paducah Homebuyer Program is a forgivable loan for homebuyers in Paducah, Kentucky, administered by Paducah Alliance of Neighbors (PAN).

• A homebuyer program run by the Paducah Alliance of Neighbors that lets income-qualified, mortgage-ready families purchase newly constructed or completely renovated affordable homes (1,000-1,500 sq ft) in heart-of-Paducah neighborhoods, with the City of Paducah's Southside/Walter Jetton area as an initial focus. To make the homes affordable, the construction/loan-cost gap is filled by layered subsidies from Kentucky Housing Corporation (HOME/Affordable Housing Trust Fund), the City of Paducah, and the Paducah Alliance of Neighbors or FHLB Cincinnati. Each subsidy is structured as a forgivable mortgage: live in the home 5-10 years (depending on the source) and owe nothing; move or sell during the period and repay the pro-rated unforgiven portion.
• Affordable newly-built or fully-renovated home.
• Layered down payment/gap subsidy.
• Forgivable mortgages.
• Buyer choice of finishes.
• Homebuyer counseling with partial reimbursement.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Kentucky Housing Corporation (federal HOME/HUD + Affordable Housing Trust Fund), City of Paducah, Paducah Alliance of Neighbors, and/or Federal Home Loan Bank of Cincinnati Affordable Housing Program.

Do you have to pay it back?

Heart of Paducah Homebuyer Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by If the buyer moves out or sells during the 5-10 year forgiveness period (varies by funding source), the pro-rated unforgiven portion is repaid.
• The assistance is recorded in Forgivable second/subordinate mortgage(s) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Heart of Paducah Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Heart of Paducah Homebuyer Program limits household income to $50,900.

• The limit applies to total household income, not only the borrower’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?

Heart of Paducah Homebuyer Program caps the purchase price as follows: Homes financed with mortgages in the $80,000-$120,000 range depending on home size.

• Eligible property types include Single Family (newly constructed or fully renovated, 1,000-1,500 sq ft).
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Heart of Paducah Homebuyer Program is a federal program, so it is not limited to Kentucky.

• The program targets specific areas: Heart-of-Paducah neighborhoods; initial focus on Walter Jetton / Southside area.
• Targeted neighborhoods: Walter Jetton Area / Southside, Paducah.

How do you apply?

Applications for Heart of Paducah Homebuyer Program go through Paducah Alliance of Neighbors (PAN), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Online Homebuyer Counseling program (certificate of completion required).

2. 2

   Contact Paducah Alliance of Neighbors (PAN) to reserve funds

   Funds are reserved through Submit program application; PAN verifies income, then buyer obtains lender pre-approval; qualified applicants placed on an Approved Homebuyer List worked top-down as homes/funding allow, 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.