November 29, 2017 Real Estate Agent. Investing in quality housing solutions.

Transcription

1 November 29, 2017 Real Estate Agent Investing in quality housing solutions.

2 KHC Program Guide Real Estate Agents November 29, 2017 Conventional Program Changes The Conventional No MI Program will now be named Preferred Risk Program. The Conventional with MI Program will now be named Preferred Program. KHC will now allow LTVs below 80.01% on the Preferred program. See page 2 for all the details.

3 Secondary Market First Mortgage Products Eligibility: Both first-time and repeat home buyers purchasing a single-family dwelling. Purchase price can be no more than $282,000. Applicant s income must be within applicable secondary market limits in effect. If Affordable DAP is used, then household income needs to be within Affordable DAP income limits. KHC s Secondary Market Government Loan Products Federal Housing Administration (FHA) Financing to 96.50% of lesser of sales price or appraised value All KHC DAPs and other KHC-approved secondary financing applicable Maximum ratios of 40/45 with AUS approve/eligible, accept/accept through TOTAL Verbal VOE for salaried borrower(s) within 10 business days prior to note date Upfront and Annual Mortgage Insurance Premiums 30-Year Loan Term LTV less than or equal to 95% 1.75% UFMIP.80 Annual LTV greater than 95% 1.75% UFMIP.85 Annual Rural Housing Services (RHS) Financing to 100% of the appraised value, plus guarantee fee of 1.00%/0.35% annual fee All KHC DAPs and other KHC-approved secondary financing applicable Ratio requirements per agency guidelines Two trade-lines with a minimum of 12 month history KHC will accept GUS findings, including reduced documentation and, with approval, expanded ratios up to 40%/45% Verbal VOE for salaried borrower(s) within 10 business days prior to note date and 30 calendar days prior to the note date for self-employed borrower(s) Veteran s Administration (VA) 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 Ratio requirements and funding fee per agency guidelines Maximum ratios of 40/45% with AUS Approval Delegated and Correspondent lenders may charge a 1% VA Flat Charge in addition to VA allowable fees Real Estate Agents KHC Program Guide November 29, 2017 Page 3 of 10

4 Mortgage Revenue Bond (MRB) First Mortgage Products Eligibility: Must be a first-time home buyer, unless purchasing a single-family dwelling in a targeted county. Purchase price can be no more than $253,800. Gross annual household income must be within applicable limits in effect. All non-borrowing occupants age 18 or older must disclose income and complete KHC Form 98. KHC s MRB Government Loan Products Federal Housing Administration (FHA) Financing to 96.50% of lesser of sales price or appraised value All KHC DAPs and other KHC-approved secondary financing applicable Maximum ratios of 40/45 with AUS approve/eligible, accept/accept through TOTAL Verbal VOE for salaried borrower(s) within 10 business days prior to note date Upfront and Annual Mortgage Insurance Premiums 30-Year Loan Term LTV less than or equal to 95% 1.75% UFMIP.80 Annual LTV greater than 95% 1.75% UFMIP.85 Annual Rural Housing Services (RHS) Financing to 100% of the appraised value, plus guarantee fee of 1.00%/0.35% annual fee All KHC DAPs and other KHC-approved secondary financing applicable Ratio requirements per agency guidelines KHC will accept GUS findings, including reduced documentation and, with approval, expanded ratios up to 40%/45% Verbal VOE for salaried borrower(s) within 10 business days prior to note date and 30 calendar days prior to the note date for self-employed borrower(s) Veteran s Administration (VA) 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 Ratio requirements and funding fee per agency guidelines Maximum ratios of 40/45% with AUS Approval Delegated and Correspondent lenders may charge a 1% VA Flat Charge in addition to VA allowable fees Real Estate Agents KHC Program Guide November 29, 2017 Page 4 of 10

5 KHC s Secondary Market & MRB Conventional Products 30-Year Loan Term PARAMETER Preferred Risk Real Estate Agents KHC Program Guide November 29, 2017 Page 5 of 10 Preferred Loan Terms 30-Year, Fixed Interest Rate Eligible Occupancy Owner Occupied Eligible Purpose Purchase Eligible Property Types One-unit dwellings or approved condominiums Ineligible Property Types Manufactured housing or co-ops Down Payment of 3% Borrower s Funds, Gift, KHC DAPs, or Welcome Home Monies Maximum LTV/CLTV 97/105% Minimum LTV 80.01% No Limit Minimum Credit Score 660 Ratio Guidelines 40/50% Borrower Contribution/Reserves None Income Limit KHC s Secondary Market or MRB s Income Limits Manual Underwriting Not Permitted Maximum Seller Contributions 4% for CLTV > 90%--Special Feature Code 849 and 6% for CLTV<or=90% Other Real Estate Property Can own other real estate property including manufactured housing with Secondary Market Funding at time of closing but NOT with MRB Funding. Follow Fannie Mae agency guidelines. Subordinate Financing ***if property is a KHC REO, none of KHC s DAPs can be used*** Community Seconds per FNMA Guidelines, All KHC DAPS Applicable. Special Feature Code 118 Community Seconds Home Buyer Education If all borrowers obtaining the loan are first-time home buyers (no ownership interest in a residential property in the last three years), at Follow DU Findings least one person on the loan must complete pre-purchase home buyer education in the form of an online, telephone, or face-to-face Documentation Affordable Closing Cost Grant- Available to borrowers under the Affordable DAP Income Limit Mortgage Insurance KHC will order ALL MI for TPO Lenders See page 6 for specific guidelines KHC Approved MI Companies Desktop Underwriter (DU) Only allowable AUS system Must receive an Approved/Eligible recommendation workshop. Verbal VOE for salaried borrower(s) within 10 business days prior to note date and 30 calendar days prior to the note date for selfemployed borrower(s). $1,500 Special Feature Code: 843 None Required N/A In the ADDITIONAL DATA screen, select HFA PREFERRED RISK SHARING Special Feature Code: 820 $1,500 Special Feature Code: 843 Required Charter Coverage 97% % 18% 95% % 16% 90% % 12% 85% & Under 6% 80% or below None Arch MI, Essent, Genworth, MGIC, National MI, Radian & UG In the ADDITIONAL DATA screen, select HFA PREFERRED Special Feature Code: 741 KHC will not purchase conventional loans that are determined to be High Priced Mortgage Loans. Borrower must meet BOTH KHC and MI Company guidelines.

6 Second Mortgage Products Down Payment Assistance Program (DAP) Guidelines Only home buyers obtaining a Kentucky Housing Corporation first mortgage are eligible for DAP funds. Interest Rate with DAP applicable. DAP HHF Not available. Regular Affordable Income Eligibility Funding Source MRB or Secondary Funding Source MRB or Secondary Affordable DAP Income Eligible Properties **HHF DAP cannot be used in conjunction with New Construction properties. Property must have been previously occupied** Eligible Borrowers Amount Terms Purchase Price Limit AUS Home Buyer Education Ratios Existing Property Located in Christian, Hardin, Jefferson or Kenton County No New Construction First-time Home Buyers (No ownership interest in the last 3 years) $10,000 Not required to be at maximum LTV first mortgage amount 0% Forgivable, second mortgage over a five-year term All Borrowers must complete prepurchase home buyer education in the form of an online, telephone, or face-toface workshop No monthly payment With AUS approval, can go up to 40/45% with government loans and 40/50% with conventional loans New and Existing Properties First-time and Repeat Home Buyers Up to $6,000 Not required to be at maximum LTV first mortgage amount 5.50% amortized over 10 years $282,000 Secondary Market $253,800 MRB Enter as Subordinate Financing AUS Approval required Not Required Up to $4,500 Not required to be at maximum LTV first mortgage amount 1% amortized over 10 years Borrower must qualify with additional monthly payment. With AUS approval, can go up to 40/45% with government loans and 40/50% with conventional loans Required Repairs DAP Disclosures Buyer or seller may use OWN funds to pay for repairs and pay off existing debt GFE, TIL, HUD-1, and Dodd-Frank Affidavit Can be generated from KHC s Loan Reservation System Loan Estimate and Closing Disclosure Available in KHC s Loan Reservation System--$50 Document Preparation Fee to closing agent and $26 (estimated) Recording Fee **Delegated/Correspondent add $13 for assignment HHF DAP is available on a first-come, first-served basis. Real Estate Agents KHC Program Guide November 29, 2017 Page 6 of 10

7 KENTUCKY HOUSING CORPORATION 2017 SECONDARY MARKET GROSS ANNUAL APPLICANT S INCOME LIMITATIONS Effective May 1, 2017 Secondary Market Purchase Price Limit -- $282,000 County Income Limits County Income Limits Anderson 116,725 Jessamine 116,550 Boone 130,725 Kenton 130,725 Bourbon 116,550 Larue 109,900 Bracken 130,725 Lyon 102,725 Bullitt 116,200 Marshall 105,700 Caldwell 99,925 McCracken 101,325 Calloway 103,775 Meade 102,550 Campbell 130,725 Mercer 99,575 Clark 116,550 Nelson 102,200 Edmonson 108,500 Oldham 116,200 Fayette 116,550 Pendleton 130,725 Franklin 110,425 Scott 116,550 Gallatin 130,725 Shelby 128,275 Hardin 109,900 Spencer 116,200 Henderson 114,625 Trimble 116,200 Henry 116,200 Warren 108,500 Jefferson 116,200 Woodford 116,550 Applicant s Income Limit for all other counties not listed above: $98,875 Real Estate Agents KHC Program Guide November 29, 2017 Page 7 of 10

8 Anderson Ballard Barren Boone Bourbon Boyd Bracken Bullitt Caldwell Calloway Campbell Christian Clark Daviess Edmonson Fayette Franklin Gallatin Graves Greenup Hancock Hardin Henderson Henry KENTUCKY HOUSING CORPORATION MRB and HOME BUYER TAX CREDIT 2017 GROSS ANNUAL HOUSEHOLD INCOME LIMITS Effective May 1, 2017 The income limitations listed below are imposed by federal law. Failure to comply with them may create adverse consequences for Kentucky Housing Corporation and its bondholders. Funding Source: MRB/Home Buyer Tax Credit (Purchase Price Limit $253,800) Person(s) per household (1 or 2) (3 or more) Person(s) per household (1 or 2) (3 or more) 66,700 76,705 74,700 85,905 79,920 93,240 89, ,580 66,400 76,360 53,200 61,180 59,300 68,195 74,700 85,905 79,920 93,240 74,400 86,800 66,600 76,590 63,100 72,565 89, ,580 62,800 72,220 65,500 75,325 79, Jessamine Kenton Larue Laurel Livingston Lyon Madison Marshall McCracken Meade Mercer Muhlenberg Nelson Oldham Pendleton Scott Shelby Simpson Spencer Taylor Trigg Trimble Union Warren 66,600 76,590 74,700 85,905 75,360 87,920 58,700 67,505 72,480 84,560 57,900 66,585 55,500 63,825 57,100 65,665 70,080 81,760 66,400 76,360 89, ,580 79,920 93,240 73,300 84,295 76,680 92,960 79,680 92,960 62,000 71,300 Jefferson Woodford 66,400 76,360 66,600 76,590 For all other counties not listed above: $67,800 (1 or 2 persons) $79,100 (3 or more persons) Real Estate Agents KHC Program Guide November 29, 2017 Page 8 of 10

9 2017 AFFORDABLE DAP GROSS ANNUAL APPLICANT S INCOME LIMITS Effective June 8, 2017 Secondary Market Purchase Price Limit -- $282,000 and MRB Purchase Price Limit -- $253,800 County Income Limits County Income Limits Adair 38,480 Hickman 40,320 Allen 49,600 Hopkins 44,880 Anderson 53,360 Jefferson 53,120 Ballard 44,800 Jessamine 53,280 Barren 41,520 Kenton 59,760 Boone 59,760 Larue 50,240 Bourbon 53,280 Livingston 41,520 Boyd 41,920 Logan 39,280 Boyle 42,080 Lyon 46,960 Bracken 59,760 Madison 48,320 Breckinridge 41,120 Marion 38,320 Bullitt 53,120 Marshall 46,320 Butler 49,600 McCracken 41,200 Caldwell 45,680 McLean 43,280 Calloway 47,440 Meade 50,240 Campbell 59,760 Mercer 45,520 Carlisle 40,800 Muhlenberg 39,120 Carroll 39,360 Nelson 46,720 Christian 44,640 Nicholas 41,120 Clark 53,280 Oldham 53,120 Crittenden 42,720 Owen 43,440 Daviess 43,280 Pendleton 59,760 Edmonson 49,600 Powell 38,560 Fayette 53,280 Rowan 42,320 Franklin 50,480 Scott 53,280 Gallatin 59,760 Shelby 53,120 Garrard 44,560 Simpson 39,680 Grant 59,760 Spencer 53,120 Graves 42,320 Todd 42,400 Greenup 41,920 Trigg 44,640 Hancock 43,280 Trimble 53,120 Hardin 50,240 Union 38,800 Harrison 39,920 Warren 49,600 Henderson 52,400 Washington 40,720 Henry 53,120 Webster 44,640 Woodford 53,280 Applicant s Income Limit for all other counties not listed above: $38,240 Real Estate Agents KHC Program Guide November 29, 2017 Page 9 of 10

10 ABOUT KHC KHC is Kentucky s state housing finance agency. Created by the General Assembly in 1972, KHC provides affordable housing opportunities for low- and moderate-income Kentuckians. In our role as a mortgage investor, KHC conducts business through a statewide network of approved lenders. As the investor, KHC must also have its loans guaranteed or insured, either through a government agency (FHA, VA, or RHS) or with private mortgage insurance for Conventional. For more information about KHC, visit our website at We ve helped over 94,000 households attain homeownership with our safe and secure mortgage loans. Let us help your buyers, too. Home Buyer Eligibility KHC can help both first time and repeat home buyers statewide. Must be a U.S. citizen or resident alien. Applicant s income ONLY through Secondary Market. Property must be the borrower s principal residence. Borrower cannot own any other residential property at time of closing for all loans with MRB Funding. Any Borrower that meets both the income and purchase price limit can have access to Down Payment Assistance. KHC ELIGIBILITY AND CREDIT STANDARDS OVERVIEW (Not intended to be an all-inclusive list.) Kentucky Housing Credit Standards 620 minimum credit score required for FHA, VA, & RHS. 660 minimum credit score required for Conventional. Debt ratios: 29/41% for RHS, but with GUS approval, can go up to 40/45%. FHA and VA = 40/45% with AUS Approval Conventional 40/50% with DU Approval Collections in most cases do not need to be paid-off in full. Bankruptcies and foreclosures must be discharged two to seven years. Non-taxable income can be grossed-up per insuring agency guidelines Property Eligibility Both new and existing property. Both new & existing Manufactured Housing allowed with FHA & VA. With RHS only new construction Manufactured housing is allowed. Purchase price limit of $282,000 for Secondary Market or $253,900 for MRB Loans. Full appraisal required on all KHC loans. With Existing Property, VA is the only loan product that requires a termite inspection. A termite soil treatment certificate is required on ALL new construction properties except on conventional loans. KHC S WEBSITE KHC has developed a website useful to real estate agents. It provides you with the information you need to assist your buyers in obtaining KHC financing. Go to to view a list of participating lenders statewide that are approved to provide our financing programs. You ll also find our current income and purchase price guidelines, and information about continuing education credit courses. While you re on our website, don t forget to subscribe for e-grams to receive updates on KHC s programs! KHC loans offer benefits for both you and your buyer: WHY CHOOSE KHC? Programs available for first-time and repeat home buyers statewide. Increased income and purchase price guidelines mean more purchasing power for your buyer and potentially higher commissions for you. Downpayment and closing costs assistance programs for qualified buyers. KHC s Home Buyer Tax Credit Program. Conventional, FHA, RHS, and VA loan programs with competitive interest rates. Available home buyer education and counseling programs. KHC loans are serviced in Kentucky we never sell our loans! Available online bill payment and account maintenance for borrowers. Real Estate Agent registry allows you to stay up-to-the-minute on additional funding and program changes. Kentucky Housing Corporation Mortgage Loans The Home Loan You Can Trust Visit our website at or call toll-free in Kentucky at or , extension 291, or TTY 711. Real Estate Agents KHC Program Guide November 29, 2017 Page 10 of 10