By Stu Johnson
Richmond, KY – The legislation, signed into law by Governor Beshear Monday, creates a new program for homeowners whose incomes are up to 175 percent of the area median income. Kentucky Housing Corporation spokeswoman, Charla Jackson Peter says many two wage earning families have combined incomes above the income limits.
"You think about our service people who protect our community; police officers, firefighters, our educators. Many of these families with this type of income would be above that threshold and could not get assistance through Kentucky Housing Corporation," said Jackson-Peter.
It's not just about offering assistance for buying that first home. Jackson-Peter says re-financing is also a key part of the measure.
"It will be wonderful to help these families who may not be with a fixed rate on their mortgage. They can refinance and have a fixed rate, so that they know what their monthly payment is going to be and it will be that way for 30 years," added Jackon-Peter.
Jackson-Peter admits insurance and taxes on mortgage payments still could go up over that period of time. She says another new program is expected to be announced next week.
"And that is gonna be really geared to help the foreclosure crisis. Kentucky was one of 18 states I believe that have been hit really hard with foreclosures with an unemployment rate," explained Jackson-Peter.
The legislation become effective the end of April.