Kentucky Housing Affordable DAP Increasing from $4,500 to $6,000

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

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916