Governor Steve Beshear and the Kentucky Housing Corporation have announced an initiative to provide up to a $4,500 for a down payment and closing costs for first time home buyers who obtain a loan through the KY Housing Corporation. The program will be administered by the KY Housing Corporation and will begin on May 1, 2009 and run through November 30, 2009. The First Home Advantage Program offers a 10 year loan that defers payment with a zero percent interest rate until July 1, 2010. After the initial deferment period, the loan will fully amortize over ten years at the rate of 6 percent. If the borrower pays off the loan before July 1, 2010, KY Housing Corporation will forgive $300 of the principal balance (Office of Governor Steve Beshear).