How to Pay Your Mortgage with Kentucky Housing Corporation

For Kentucky residents with a home loan through Kentucky Housing Corporation (KHC), making monthly mortgage payments conveniently and on time is essential KHC offers various payment options to fit your needs Understanding the available methods, fees, and policies will help you manage this financial obligation seamlessly.

Overview of KHC Mortgage Loans

Kentucky Housing Corporation is a self-supporting quasi-government agency that provides affordable home financing options across the state KHC offers

• Low interest rate mortgage loans

• Down payment assistance programs

• Special loans for veterans, teachers, etc.

• Refinancing products

• Homebuyer education and counseling

Loans are serviced directly by KHC for the life of the mortgage. Borrowers make payments to KHC and can contact them for account management assistance.

KHC Mortgage Payment Methods

KHC offers several ways for borrowers to pay their home loan each month:

• Online – Free payments via KHC’s website. Need to register with loan details first. Fast and convenient 24/7 access.

• Phone – Call their automated payment line anytime. $5 fee per loan. Have loan number ready.

• Check-by-Phone – Speak to a representative to make a payment. $10 fee. Provide checking account and routing numbers.

• Mail – Send check or money order with payment coupon to KHC’s payment center. Allow processing time.

• In-Person – Visit KHC office during business hours and pay with check/cash/money order.

• Drop Box – Use the 24-hour drop box at KHC’s entrance to leave check/money order payments. No cash.

• Auto Pay – Set up recurring automatic payments from your bank account through the online portal.

KHC aims to offer convenient payment options to fit every borrower’s needs and preferences. Choose the method that works best for you.

Avoid Late Fees and Penalties

As with any mortgage loan, it is essential to pay your KHC home loan on time each month. Payments are due on the 1st of every month.

If the payment is not received by the 15th, a late fee will be assessed. Additional fees apply if the account becomes 30, 60, or 90 days delinquent. Severely late payments also incur higher interest rates.

Sign up for payment reminders and due date notices. Have a backup payment plan in case you cannot pay on time. Communicate with KHC early about any difficulties to avoid penalties. Protect your good credit and homeownership by paying timely.

Assistance for Struggling Homeowners

If you are experiencing financial hardship and trouble making mortgage payments, KHC offers assistance:

• Forbearance – Temporarily reduced or suspended payments for up to 6 months. Must reapply after each period.

• Repayment plan – Set up an affordable repayment schedule for missed payments.

• Loan modification – Permanently adjust loan terms to lower payments.

• Partial claim – Interest-free loan from KHC to reinstate a delinquent account. Repaid upon selling/refinancing.

• Deed-in-lieu – Voluntarily transfer property title to KHC to avoid foreclosure.

Contact KHC’s Homeownership Protection Center as soon as possible if you anticipate difficulty making payments. Counselors can explore options and solutions to avoid foreclosure.

KHC Payment Policies and Tips

Keep these KHC payment policies and tips in mind:

• One-time debit/credit card payments incur a fee, recurring auto-pay does not.

• Processing fees apply for automated phone and check-by-phone payments.

• Online and mailed payments are free. Allow 5-7 days for mailed payments.

• Payments are applied to the oldest outstanding balance first.

• Partial or incomplete payments still incur late fees if after due date.

• Refinancing your KHC loan does not change the due date or monthly payment date.

• Update KHC if your mailing address, phone number, or bank account changes.

• Notify your insurance and tax authorities to direct bills to KHC for escrow accounts.

• Watch for special one-time escrow amounts needed occasionally in addition to regular monthly payments.

Staying informed on KHC’s payment system, assistance programs, and policies makes managing your mortgage smooth and straightforward.

New KHC Mortgage Account Setup

If you just closed on a new KHC mortgage loan, be sure to complete these steps to set up your payment account:

• Provide insurance agent and tax authority with KHC’s contact to direct bills for escrow account.

• Register for online access with your new loan details to view balance, history, and make online payments.

• Sign up for auto-pay or schedule recurring reminders to pay each month.

• Know your exact monthly amount, due date each month, late fee policy, and assistance options.

• Update your mailing address with KHC if moving into the new home.

• Ask about email billing and paperless options to receive statements electronically.

Proactively managing your new KHC home loan will help build good financial habits and credit history as a new homeowner.

Responsible Homeownership with KHC

Owning a home is an exciting milestone for Kentucky families. Keeping up with mortgage payments allows you to fully realize the benefits and pride of homeownership. KHC’s wide range of payment options, assistance programs, and responsible lending practices aim to set up borrowers for success.

Paying your KHC mortgage completely and on time every month keeps you protected. Leverage the available resources to overcome any temporary hardships. Maintain open communication, register for account access, and sign up for reminders. Responsible payment habits will keep you in your KHC-financed home securely for many years to come.