Affordable DAP Increasing from $4,500 to $6,000
Effective with new reservations as of Tuesday, August 21, 2018, the Affordable Down payment Assistance Program (DAP) has increased to $6,000. The term of 10 years and 1 percent interest rate will remain the same.
FHA Manual Underwriting
Effective immediately, KHC will allow manual underwriting on FHA loans.
Loan receiving a "Refer" finding; and
Loan receiving an "Approve/Accept" finding but which have been downgraded to a "Refer" by the Underwriter; and
Loan receiving an "Approve/Accept" is downgraded to a "Refer" loan must be a manual underwrite.
Minimum credit score of 620.
A verification of rent (VOR) is required if rent is paid to a management company or 12 months cancelled checks if paid to an individual.
A letter of explanation (LOE) from borrower is required if borrower is living rent free.
KHC follows U.S. Department of Housing and Urban Development guidelines with the exception of the minimum 620 credit score and VOR or LOE regarding not paying rent. Refer to the KHC/FHA Manual Underwriting Matrix on KHC's Lender Resources page, in the First Mortgage Program Information tab