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Lending Partners

Conventional Preferred Risk Program

KHC's Conventional First Mortgage Programs

Preferred Risk Program

Preferred Program

Preferred Plus 80 Program

Loan Terms

30-Year, Fixed Interest Rate

Eligible Occupancy

Owner Occupied

Eligible Purpose

Purchase

Eligible Property Types

One-unit dwellings or approved condominiums

Manufactured Housing

Limited to 95/105%

Choose Preferred Risk MH in KHC’s loan origination system.

Choose Preferred MH in KHC’s loan origination system.


Choose Preferred Plus 80 MH in KHC’s loan origination system.

Down Payment of 3%

Borrower’s Funds, Gift, KHC DAPs, or Welcome Home Monies


Maximum LTV/CLTV

97/105%

Minimum Credit Score

660

Ratio Guidelines

40/50%

Borrower Contribution/Reserves

None

Income Limit

80 percent AMI Income

Secondary Market Income

Maximum Seller Contributions

3% for CLTV > 90% and 6% for CLTV < or = 90%

Other Real Estate Property

Can own other real estate property at time of closing.


Subordinate Financing

***if property is a KHC REO, none of KHC’s DAPs can be used***

Community Seconds per Fannie Mae Guidelines, All KHC DAPS Applicable.

Special Feature Code 118 Community Seconds


Home Buyer Education

Follow Desktop Underwriter Findings


Mortgage Insurance

KHC will order ALL MI for TPO Lenders

None Required

Required – Charter Coverage

97% - 95.01%     18%

95% - 90.01%     16%

90% - 85.01%     12%

85% - 80.01%       6%

80% or below        None

Required – Standard Coverage

97% - 95.01%     35%

95% - 90.01%     30%

90% - 85.01%     25%

85% - 80.01%     12%

80% or below       None


KHC Approved MI Companies

N/A

Arch MI, Essent, Genworth, MGIC, National MI, Radian, and UG


Desktop Underwriter (DU)

Only allowable AUS system.

 

Must receive an Approved/Eligible recommendation.

No manual underwriting allowed.

In the “ADDITIONAL DATA” screen, select

“HFA PREFERRED RISK SHARING”

Special Feature Code:  820

In the “ADDITIONAL DATA”  screen, select

“HFA PREFERRED”

Special Feature Code:  782 and 741                    

In the “ADDITIONAL DATA”  screen, select

“HFA PREFERRED”

Special Feature Code:  782, 741, and 745