KHC Conventional Preferred (HFA Preferred) First Mortgage Program

KHC Conventional Preferred (HFA Preferred) First Mortgage Program is a first mortgage for homebuyers in Statewide, Kentucky, administered by Kentucky Housing Corporation (KHC). KHC's Conventional Preferred (HFA Preferred) is a 30-year fixed conventional mortgage via Secondary Market funding, underwritten through Fannie Mae DU (Approve/Eligible). Available to first-time and repeat buyers statewide, income-limited to 80% AMI, with reduced charter-coverage MI, no minimum borrower contribution, no reserves, and 3% minimum down. KHC DAP can be layered. First-time and repeat buyers statewide. Reduced charter-coverage MI <=80% AMI. No minimum borrower contribution. No reserves required. 3% down. Compatible with KHC DAP, max 97% LTV with DAP.

KHC Conventional Preferred (HFA Preferred) First Mortgage Program is a first mortgage and is repaid under the terms set by Kentucky Housing Corporation (KHC). The assistance is recorded in First position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

KHC Conventional Preferred (HFA Preferred) First Mortgage Program is open to homebuyers who will live in the home as their primary residence. On credit, the program states: Minimum 660. Requires Fannie Mae DU Community Lending 'HFA Preferred'; SFC 782/741; AUS Approve/Eligible (no manual UW). Seller contributions 3% if CLTV>90% else 6%. Rate as of June 2026: 6.500% (<=$300k)/6.750% (>$300k).

KHC Conventional Preferred (HFA Preferred) First Mortgage Program limits household income to 80% of the area median income, which varies by county and household size. HFA Preferred: 80% AMI (applicant income only), eff. May 18, 2025. E.g. Jefferson $75,440; Fayette $81,920; Kenton/Boone $88,560; unlisted counties $56,720. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

KHC Conventional Preferred (HFA Preferred) First Mortgage Program caps the purchase price at $566,354. Eligible property types include Single Family, Condominium, and Duplex. New construction is eligible.

KHC Conventional Preferred (HFA Preferred) First Mortgage Program serves homebuyers purchasing in Statewide, Kentucky.

Applications for KHC Conventional Preferred (HFA Preferred) First Mortgage Program go through Kentucky Housing Corporation (KHC), which publishes the current terms and the application steps on its own site. Funds are reserved through KHC PowerLender (Mon-Fri 10a-9p). Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.