Mortgage Revenue Bond (MRB) First Mortgage Products
Eligibility: Must be a first-time home buyer, unless purchasing a single-family dwelling in a targeted county. Purchase price can be no more
than $243,000 or $195,700 when any form of HOME DAP is used. Gross annual household income must be within applicable limits in effect.
All non-borrowing occupants age 18 or older must disclose income and complete KHC Form 98. Mortgage loan must be a new mortgage
loan, not a refinance.
KHC’s First Mortgage Government Loan Products
Federal Housing Administration (FHA)
Minimum 640 credit score required.
Financing to 96.50% of lesser of sales price or appraised value.
All KHC DAPs and other KHC-approved secondary financing may be used.
Maximum 6% seller-paid items.
Maximum ratios of 40/45 with AUS approval.
FHA’s Appraiser Independence began with case numbers on or after February 15, 2010. Please see Mortgagee Letter 2009-28 for full
details.
All borrowers must be scored by TOTAL.
Lender must follow the FHA maximum mortgage limits for particular area – see https://entp.hud.gov/idapp/html/hicostlook.cfm.
Must follow Upfront and Annual Mortgage Insurance Premiums Guidelines (see information below).
Upfront and Annual Mortgage Insurance Premiums
Loan Terms > 15 years
Beginning with case numbers assigned on or after Monday, October 4, 2010
LTV
Less than or Equal to 95% 1% annual .85 monthly
> 95% 1% annual .90 monthly
Conventional
Minimum 660 credit score required.
Maximum loan-to-value (LTV) ratio is 80%.
Maximum ratios 40/45 with AUS approval.
No down payment assistance products may be used. Borrower must meet down payment requirements with their own funds or a gift.
Pre-purchase education required as per AUS findings
Not available for manufactured housing.
Appraiser Independence required (see page 3).
KHC does not presently have a product for 81% LTV or greater.
Rural Housing Services (RHS)
Minimum 640 credit score required.
Financing to 100% of the appraised value, plus guarantee fee of 3.5%.
All KHC DAP programs and other KHC-approved secondary financing may be used.
No maximum on seller-paid items.
Ratio requirements and guarantee fee per agency guidelines.
KHC will accept Government Underwriting System (GUS) Findings.
Veteran’s Administration (VA)
Minimum 640 credit score required.
Maximum ratios 40/45% with AUS approval.
Financing to 100% of the lesser of the appraised value or sale price.
All KHC DAP programs and other KHC-approved secondary financing may be used.
Maximum 4% seller-paid items.
Follow agency guidelines for ratio requirements and funding fee.
KHC Program Guide – Real Estate Agents – January 1, 2011
