KHC’s First Mortgage Government Loan Products
Federal Housing Administration (FHA)
 Minimum 620 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 3 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 > 15 years
Case numbers 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 620 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 620 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.
Mortgage Revenue