Loans - Mortgage Services
Get the best mortgage loan for you
When you decide to buy a home or refinance a mortgage, it's a big step. You can trust us to find the loan program that's best for you.
Buying a new home is a source of anxiety, frustration -- and a huge sense of accomplishment. Trust our professionals to find the mortgage loan that best fits your needs, too. "Less paperwork and more personal attention" means you enter a frustration-free zone from application to decision. We can help you get there.
Refinancing your current mortgage has never been easier. We make it easy and worry-free to reduce your interest rate and monthly payment. Let our professionals guide you to the very best refinanced loan!
There is a range of mortgage choices available for home loan financing. Some offer payments that are set for the life of the mortgage, while others feature smaller initial payments that will fluctuate with interest rate changes. Your choice in financing will depend on your unique set of circumstances and your financial lifestyle. To help you make an informed decision, we will make sure you understand the best option for your current situation.
Fixed Versus Adjustable Rate
- Fixed-Rate Mortgage - This type of financing features an interest rate that is set for the life of the loan, offering predictable monthly payments. This loan usually has a higher interest rate than an adjustable-rate mortgage.
- Adjustable-Rate Mortgage (ARM) - ARMs normally start with an interest rate that is lower than fixed-rate mortgages. But the interest rate (and your monthly loan payment) will move up or down according to market conditions. Most ARMs have interest rate caps both annually and over the life of the loan to help prevent dramatic changes in rates.
Special Home Loan Financing
KNB offers several government-sponsored home ownership incentive programs. These special financing options are designed to lower your interest rate, down payment amount and/or closing costs. Here are a few examples:
- Federal Housing Association (FHA) loans - These loans offer the benefit of a low, 3.5% down payment.
- Veterans Affairs (VA) Loans - VA loans make 100-percent financing available to qualified military veterans with at least six months of active duty. This loan is also available to the unmarried spouses of a deceased veteran whose death was service related, or spouse of an MIA or POW.
- Kentucky Housing Corporation (KHC) - KHC loans are great for the first-time home buyer. They are subject to income guidelines.
Homeownership Opportunities Still Available Through Kentucky Housing Corporation
Lowest interest rates ever offered through KHC
There is good news for Kentuckians thinking about purchasing a home. Kentucky Housing Corporation (KHC), the state housing finance agency, is offering the lowest rates ever in its 40-year history.
"It has never been a better time to purchase a home through KHC," said Governor Steve Beshear. "With rates this low and down payment and closing costs assistance, Kentuckians who thought they would not be able to own a home now have an opportunity. These low rates will not last; buyers should contact a KHC-approved lender as soon as possible."
Purchasing a home through KHC is easy. Buyers work with a network of KHC-approved lenders and banking institutions that help the buyer throughout the purchasing process. There are also over 1,000 real estate agents who have become KHC-certified and have committed to helping their buyers with affordable home-financing solutions. A list of lenders and real estate agents is available on KHC's Web site. Buyers should ask for a KHC loan.
"Kentuckians can feel comfortable purchasing a home through KHC," said Richard L. McQuady, chief executive officer of KHC. "KHC home loans start with us and end with us. When homeowners make a payment or call about their loan, they are talking to a KHC staff person at our office in Frankfort."
Kentucky Housing is able to offer these low rates through an extension of the New Issue Bond Program (NIBP), a federal bond purchase program provided by the U.S. Department of Treasury.
- Competitive fixed rates - Click here for up-to-date rates.
- No monthly mortgage insurance
- No down payment and no cash reserve requirements
- Finance up to 100% of purchase price, plus closing costs if home appraises for greater than purchase price
- One-time guarantee fee, can be financed into the loan
- Gift / Grant funds allowed
- Seller concessions allowed
- Home must be located in an eligible rural area.
Eligible property types include existing and new construction single family residences, condominiums, Planned Unit Development's (PUD's), and new manufactured homes built by an approved dealer-contractor.
- Household income must not exceed the adjusted income limit for the area.
- Borrower must be a US citizen, permanent resident, or qualified alien.