A new City of Covington program can bring homeownership dreams closer for prospective buyers.
Those looking for homes are encouraged to apply for grants of up to $15,000 under the new ARPA Mortgage Assistance Program recently approved by the Board of Commissioners.
The city has set aside an additional $500,000 from American Rescue Plan Act federal funds to help people buy homes in targeted neighborhoods. The ARPA Mortgage Assistance Program joined the growing selection of incentives the city offers potential residents and business to put down roots in Covington.
If this sounds familiar, it’s because it is. The new ARPA Mortgage Assistance Program is similar to the city’s existing Homebuyer Assistance Program, which gives deferred, forgivable loans of up to $10,000 to help low-income homebuyers with lender-required down payment and closing costs. The Homebuyer Assistance Program has been used to assist almost 400 families purchase homes since 2014.
This new program differs from the existing Homebuyer Assistance Program in a few ways.
Under the new ARPA program, homebuyers can receive a grant of up to $15,000, with no income restrictions. The existing Homebuyer Assistance Program targets low-income homebuyers, and potential residents would be excluded from that program due to total household income.
Additionally, the funds from the existing program could only be used for down payments and closing costs. While the new program can also be used for those costs, the city will prioritize working with lenders to buy down borrowers’ interest rates, essentially reducing the cost of a monthly mortgage.
Homes with a purchase price up to $350,000 are eligible and must be inside the eligibility zone.
The City of Covington has an address tool to look up if the address of a property is within the geographic eligibility zone. Homes do not need to be move-in ready either, as the new program allows for purchase and rehab loans from lenders to buy and repair the home. Properties must also be vacant and owner-occupied, no second or vacation homes or houses with tenants.
Interested in applying? Applications are taken online through the City’s Neighborly portal.
Got questions? Contact Program Coordinator John Hammons at (859) 292-2105.
