KHC's Minimum Credit Score Requirements Lowered
Effective today, KHC is lowering the minimum credit score requirement on government loans from 640 to 620, and from 680 to 660 on conventional loans.
Secondary Market Programs
August 21, 2018
Reduced Conventional Interest Rates in Underserved Markets
Effective with new reservations as of today, August 21, 2018, properties located in one
of the counties considered Middle Appalachia or Lower Mississippi Delta, will have a
reduced interest rate by .25%-.375%. The interest rate can be found on KHC’s website,
www.kyhousing.org, on the interest rate page. This program is a first-come, first-serve,
limited to 100 families and must be reserved by December 31, 2018. When reserving
this program in KHC’s Loan Reservation System, be sure to select 2MK DTS Preferred
or 2MK DTS Preferred Risk. Applicant’s income is limited to 100% AMI. See income
chart and map on pages 15-16.
Affordable Dap Increasing from $4,500 to $6,000
Effective with new reservations as of today, August 21, 2018, the Affordable DAP will
increase to $6,000. The term of 10 years and 1% interest rate will remain the same.
FHA Manual Underwriting
Effective immediately, KHC will allow manual underwriting on FHA loans.
• Loan receiving a “Refer” finding; and
• Loan receiving an “Approve/Accept” finding but which have been downgraded to
a “Refer” by the Underwriter; and
• Loan receiving an “Approve/Accept” is downgraded to a “Refer” loan must be a
manual underwrite.
• Minimum credit score of 620.
• A VOR is require if rent is paid to a management company or 12 months
cancelled checks if paid to an individual.
• A LOE from borrower is required if borrower is living rent free.
KHC follows HUD guidelines with the exception of the minimum 620 credit score and
VOR or LOE regarding not paying rent. Refer to the KHC/FHA Manual Underwriting
Matrix on KHC’s Lender Resources page, in the First Mortgage Program Information
tab
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
email me at kentuckyloan@gmail.com
