Tuesday, August 9, 2011

KHC’s First Mortgage Government Loan Products

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 February 15, 2010. See page 4 for KHC’s policy and FHA’s Mortgagee

Letter 2009-28 for HUD’s full policy.

All borrowers must be scored by TOTAL and receive approve/eligible or accept/accept.

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 Greater than 15 Years

Case numbers on or after Monday, April 18, 2011

LTV less than or equal to 95% 1% annual 1.10 monthly

LTV greater than 95% 1% annual 1.15 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.

Federal Home Loan Bank monies allowed once borrower meets the 20% down payment requirement. Must be entered as subordinate

financing in DU/LP.

Pre-purchase education required as per AUS findings.

Not available for manufactured housing.

Appraiser Independence required (see page 4).

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, including reduced documentation and, with approval, expanded


ratios up to 40/45.

Veteran’s Administration (VA)


Minimum 640 credit score required.


Ratios up to 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.




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