KHC down payment assistance program. These are FHA, VA or Rural Housing loan rates

The lower govt. rates (1st column) are for borrower's paying 1 pt origination (or having the seller pay on the borrower's behalf). The 4.125% rate (paying 1.pt) and the 4.5% rate (no point) are for borrowers with a credit score over 700 and not using a KHC down payment assistance program. These are FHA, VA or Rural Housing loan rates. All borrowers must meet KHC guidelines below. They must be a 1st time homebuyer ( not owned a primary residence in the most recent 3 yr period) unless purchasing in a targeted county. Jefferson, Bullitt and Oldham are NOT targeted counties.


KHC Mortgage Interest Rates as of 01/06/10, 1:00 p.m. ET

Rates subject to change without notice.

NEW REDUCED MRB RATES

• All borrowers must have a credit score of at least 700

• Cannot obtain KHC-funded down payment assistance

• Effective with reservations made Wednesday, October 28, 2009 and after

Loan Type Regular Rate Zero-Point Rate

Government Rates 4.125% 4.500%

Current Mortgage Revenue Bond (MRB) Interest Rates

Loan Type Regular Rate Zero-Point Rate

*Government Rates 4.375% 4.750%

**Conventional See Secondary Rates See Secondary Rates

$8000 first-time homebuyer tax credit is allowed for this funding source (for purchase contracts signed by April 30, 2010) - tax credit applied for at time of tax preparation not closing

*Government includes FHA, VA and RHS products.

**Conventional product is no longer available under MRB program - must go Secondary Market.

Current Secondary Market Mortgage (Cash Window) Interest Rates

(Refinances & Purchases)

Loan Type 1 YSP

MCM 97 (103 CLTV) 5.750%

• Simplified pricing includes LLPA and Adverse Market Fee

• No price adjustments for LTV, loan amount or credit score

• 45-day lock

• Reduced MI - 18% coverage on 97% LTV

• Down payment assistance available for purchases - maximum CLTV 103%

• MCM limited cash-out refinance (maximum LTV/CLTV 95%)

• Minimum credit score 660 - 40/45% ratios

• DU approval required - no expanded approvals

• $8000 first-time homebuyer tax credit is allowed for this funding source (for closings between January 1, 2009 to November 30, 2009) - tax credit applied for at time of tax preparation not closing

***IMPORTANT GUIDELINES***



Jefferson, Oldham and Bullitt Co. requirements for New Bond Funds:



Maximum purchase price: $258,000



Maximum household income limits: $ 61,500 (1 or 2 person households) $70,725 ( 3 or more in the household)



Maximum DTI ratios with AUS approve/eligible: 40/45



Minimum credit score: 620 for govt. loans (FHA, VA and Rural Housing)



Maximum seller paid fees: 6.0% of purchase price



Borrower must be: 1st time homebuyer OR purchase in a “targeted” county (note: Jefferson, Bullitt and

Oldham Counties are NOT “targeted counties).

U.S. citizen or resident alien

Purchasing a primary residence to owner occupy