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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


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


Minimum Credit Score


Ratio Guidelines


Borrower Contribution/Reserves


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


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


Special Feature Code:  820

In the “ADDITIONAL DATA”  screen, select


Special Feature Code:  782 and 741                    

In the “ADDITIONAL DATA”  screen, select


Special Feature Code:  782, 741, and 745