Thursday, August 1, 2013

Kentucky Housing Corporation (KHC) now has Mortgage Revenue Bond (MRB) Special Funding.

Special Funding Available Today!

Kentucky Housing Corporation (KHC) now has Mortgage Revenue Bond (MRB) Special Funding.  This funding is limited to $15 million and the program is available on a first-come, first-served basis.  Lenders may begin reserving funds on Thursday, August 1, 2013.

Eligible households include:
  • Single parents with at least one dependent child under the age of 18 living in the home.
  • At least one home buyer age 62 or older.
  • One member of the household has a permanent disability and is receiving disability income.

Program guidelines:
  • First-time home buyers, unless property is located in a targeted county.
  • Interest rate is fixed at 2.5 percent without Down payment Assistance Program (DAP) or 3.0 percent with DAP.
  • Maximum ratios 40/45.
  • Executed purchase contract.
  • Existing or new construction property (purchase price limit $115,000).
  • Regular and Affordable DAP available.
  • FHA, VA, and RHS first-mortgage programs.
  • 640 credit score and AUS approval.
  • Gross annual household income limit of $35,000 for all household sizes.
  • All household occupants (18 years and older) with income must be included on loan and be credit ready.
  • Follow the 45-day lock with current reservation extension policy.

How to make a loan reservation for the MRB Special Funding:
  • When making a reservation through Loan Connection Services select MRB as the funding source. It will default to the current market interest rate.
  • Select an eligible household status (annual household income cannot exceed $35,000).
  • Contact KHC to change the current market rate to the 2.50 percent without DAP or 3.00 percent with DAP interest rate.  Please call Allison or Chris toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extensions 291 or 443, respectively.
  • If funds are still available, the interest rate will be reduced to 2.50 or 3.00 percent.
  • Print a new reservation confirmation.
  • The lower interest rate is not guaranteed until the lender receives the updated reservation confirmation.

The updated MRB Program Guide is available on KHC's Web site, under Lenders/Realtors, Lender Services.
Did You Know? 
When utilizing KHC's Conventional No MI Program, if all the borrowers are first-time home buyers (no ownership interest in a residential property in the last three years) at least one person on the loan must complete pre-purchase home buyer education.

Neighborhood DAP Almost Gone
Only $200,000 is available for Neighborhood DAP.  If you have eligible borrowers, you are urged to reserve these funds.  Once the funds are depleted, they will not be replenished.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*