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March 20, 2015
Mortgage Revenue
Bond Programs
Investing in quality housing solutions.
KHC Program Guide
Mortgage Revenue Bond (MRB)
March 20, 2015
Changes/Additions
New MRB and Affordable DAP Household Income Limits
Effective with reservations as of today, Friday, March 20, 2015, the new MRB and
Affordable DAP Household Income Limits will be in effect.
KHC’s Mortgage Revenue Bond Conventional Products
30-Year Loan Term
Conventional No MI Program --- HFA Preferred Risk Sharing
Conventional With MI Program --- HFA Preferred
PARAMETER
Loan Terms
Eligible Occupancy
Eligible Purpose
Eligible Property Types
Ineligible Property Types
Down Payment of 3%
Maximum LTV/CLTV
Minimum LTV
Minimum Credit Score
Ratio Guidelines
Borrower Contribution/Reserves
Income Limit
Manual Underwriting
Maximum Seller Contributions
Other Real Estate Property
Subordinate Financing
***if property is a KHC REO, none of KHC’s
DAPs can be used***
Home Buyer Education
Follow DU Findings
Documentation
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
Conventional No MI
Program
Conventional With MI
Program
30-Year, Fixed Interest Rate
Owner Occupied
Purchase
One-unit dwellings or approved condominiums
Manufactured housing or co-ops
Borrower’s Funds, Gift, KHC DAPs, or Welcome Home Monies
97/105%
81%
680
40/45%
None
KHC’s MRB Household Income Limits
Not Permitted
3% for CLTV > 90% and 6% for CLTV < or = 90%
Cannot own any other real estate property including manufactured
housing
Community Seconds per Fannie Mae Guidelines, All KHC DAPS
Applicable.
Special Feature Code 118 Community Seconds
If all borrowers obtaining the loan 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 in the form of an online, telephone, or face-to-face
workshop
Most Recent Year Tax Transcripts
Verbal VOE for borrower(s) within 10 days of the note date
Required – Charter Coverage
None Required
97% - 95.01% 18%
95% - 90.01% 16%
90% - 85.01% 12%
85% - 81.00%
6%
Genworth, MGIC, Radian &
N/A
United Guaranty
In the “ADDITIONAL DATA”
In the “ADDITIONAL DATA”
screen, select
screen, select
“HFA PREFERRED RISK
“HFA PREFERRED”
Special Feature Code: 741
SHARING”
Special Feature Code: 820
KHC will not purchase conventional loans that are determined to be High Priced Mortgage Loans.
Borrower must meet BOTH KHC and MI Company guidelines. UG has additional restrictions when a DAP is used.
Mortgage Revenue Bond Programs–KHC Program Guide–March 20, 2015
Page 2 of 10
KHC’s MRB Program
Purchase Programs
30-Year Loan Term
Federal Housing Administration (FHA)
•
•
•
•
Minimum 640 credit score
Financing to 96.50 percent 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
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)
•
•
•
•
•
Minimum 640 credit score
Financing to 100 percent of the appraised value, plus guarantee fee of 2.0/0.50% 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%
Veteran’s Administration (VA)
•
•
•
•
•
Minimum 640 credit score
Financing to 100 percent 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
Mortgage Revenue Bond Programs–KHC Program Guide–March 20, 2015
Page 3 of 10
Kentucky Housing Corporation – www.kyhousing.org – 502-564-7630, extension 291
Lender Partnerships
• Delegated Lender – Originate, process, responsible for
program compliance, credit and property underwrite, close
and fund KHC’s Secondary Market loan products, register
loan in MERS and obtain insuring document.
• Correspondent Lender – Originate, process, credit
underwrite, close, and fund KHC Secondary Market loan
products, register loan in MERS, and obtain insuring
document. If KHC delegated, lender will fully underwrite.
• Third-Party Originators – Originate and process Kentucky
Housing Corporation loan products. KHC performs the
underwriting, closing and table funds the loans. The loan will
close in KHC’s name.
• Gross annual household income must be within applicable
income limits
• All non-borrowing occupants 18 or older must disclose
income and complete Kentucky Housing Form 98.
• Property must be borrower’s principal residence within 60
days of loan closing.
• Borrower cannot own any other residential property the day of
closing including manufactured housing.
• The mortgage loan must be new mortgage loan, not
refinance. The only permissible exception is a temporary
loan, such as construction loan or land contract (contract for
deed), which has a term of 24 months or less.
Gross Annual Household Income Limits:
Lender Compensation
All Lenders may NOT charge Origination or Discount
Points.
Delegated Lender: May make a maximum of 2.50% plus
customary and reasonable fees.
May charge a MCC Review Fee of $225 when offering a MCC.
Correspondent Lender: may make a maximum of 2.50% plus
customary and reasonable fees to include the underwriting fee
of $495 paid to KHC (netted out of at time of purchase) for
Conventional and RHS loans.
•
2.50% paid to Delegated or Correspondent Lender at
time of loan purchase
Third-Party Originators: may make a maximum of 2.00%:
• 2.00% paid to the lender at closing
• All Loans close in KHC’s name
Additional Fees
Administrative Fee: On EVERY loan an Administrative Fee of
$105 must be disclosed and paid to KHC
•
There is no longer a Tax Service or other misc. fees
KHC Second Mortgage Fees
Listed on a separate GFE, TIL, and HUD-1.
• Regular and Affordable DAP Document Preparation Fee to the
Closing Agent -- $50
• DAP Recording Fee -- $25
• Regular and Affordable DAP Odd Days Interest
• Delegated and Correspondent Lenders can fund the DAP
or have KHC fund the DAP.
• If KHC is to fund the DAP the Delegated or
Correspondent Lender will need to notify KHC by 1:00
p.m. EST prior to the day of closing.
• KHC will not allow high-cost mortgages under the revised HOEPA
coverage test.
Third-Party Originator Lender – GFE Breakdown
Block 1: “Our Origination Charge” fees include:
• Origination Charge: 2.00% Origination Charge, the UW Fee
of $495 and Administrative Fee of $105.
Block 2: “You receive a credit of $___ for this interest rate of
___%.This credit reduces your settlement charges.
2.00 percent credit given.
Block A: The Underwriting Fee of $495+ Administrative Fee
of $105
Home Buyer Eligibility
• Must be a first-time home buyer, unless purchasing in a
targeted county.
• Must be U.S. citizen or resident alien.
Households must meet two income requirements:
•
Compliance Income
Gross annual household income is the sum of the total
anticipated income from all sources received by the
proposed occupants during the 12-month period
commencing with the date of initial occupancy (closing).
The income of the head of the household, spouse, co-head,
and other adults 18 years and older must be counted to
ensure the household does not exceed the income
limitations (page 8). If the Affordable DAP is used, the
household must also comply with Affordable household
income limits.
•
Qualifying Income
Qualifying income includes income from the applicant(s)
that is considered stable (continuing for at least three years,
“effective income”) and is used to calculate household’s
debt ratios.
To assist the lender in calculating MRB Compliance
income, an income calculator is located on KHC’s Web site
under Lender/Realtor tab.
Household Status
An applicant must be divorced or legally separated (length
of time separated does not matter). If not legally separated
and spouse will not be occupying subject property,
applicant does not qualify for a Kentucky Housing loan.
The household, including non-borrowing occupants age 18
and older, must meet MRB requirements. Non-borrowers’
income is counted in the bond compliance income
calculation.
Mortgage Insurance with Conventional Preferred
Product
KHC allows Charter Coverage for the 97% Conventional
Product with Mortgage Insurance. KHC will order ALL MI
Certificates for TPO Lenders. TPO Lenders will have the ability
to choose the MI Company when making a loan reservation.
KHC Delegated and Correspondent Lenders will order their own
MI Certificates. KHC Delegated and Correspondent Lenders
can continue their existing delegated MI relationship with MI
Companies or send the file to the MI Company for approval.
KHC will accept both based on the company’s preference.
Correspondent Lenders will need to provide the Final MI
Certificate prior to KHC’s Loan Approval. Listed below are the
MI Companies and the portal names to access the Conventional
Preferred Product.
Genworth: Simply Underwrite
MGIC: MGIC Go!
Radian: One Underwrite
Mortgage Revenue Bond Programs–KHC Program Guide–March 20, 2015
Page 4 of 10
Kentucky Housing Corporation – www.kyhousing.org – 502-564-7630, extension 291
United Guaranty: Full File Underwriting – UG has
additional restrictions when a DAP is used. Borrower must
contribute the lesser of 1% or $1,000, maximum DTI ratio
41%, and reserves of 2 months PITI.
Borrower must meet BOTH KHC and MI Company
guidelines.
Bluegrass Appraisal Management, Inc.,
www.bgappraisalmanagement.com
All Conventional Appraisals must be in compliance with
Appraisal Independence Requirements (AIRS). KHC will accept
transferred appraisals as long as in compliance with AIRS.
Appraisal Ordering Workflow for TPO Lenders
Credit Standards
KHC will require all originating lenders to comply with the
general Ability-To-Repay (ATR) standards and consider DTI in
making reasonable, good faith determinations that the
consumer has the ability to repay the loan. KHC’s credit
standards and maximum ratio requirements are listed down
below.
• Insuring Agency credit standards for the loan type the
borrower receives.
• 640 minimum credit score required for FHA, VA and RHS
• 680 minimum credit score required for Conventional and must
receive an Approve/Eligible recommendation from DU
through HFA Preferred Risk Program for Conventional No MI
Program or Conventional with MI must receive an
Approve/Eligible recommendation from DU through the
Preferred Program.
• AUS approval (DU or LP) required only for FHA Rate/Term
Refinance Program and FHA and VA Purchase Program.
KHC will accept GUS findings for RHS Purchases.
• FHA Streamline Refinance – must not use AUS.
• Maximum debt ratios allowed are 40/45, with AUS approval.
• Maximum debt ratios for RHS of 29/41 for manual
underwriting w/o GUS approval.
• Collections, bankruptcy, and foreclosure follow insuring
agency guidelines.
• Electronic Signatures allowable on purchase contracts per
Agency Guidelines.
• Non-taxable income can be grossed-up by 15%.
• Maximum age for credit documents:
• Government Loans is 120 days
• Conventional Loans is 120 days
• IRS Form 4506-T is required to be executed by the borrower
at the time of application and closing.
Appraisal Process for Correspondent Lenders
Correspondent lenders will continue to order ALL appraisals.
Correspondent lenders participating in the Conventional product
will be required to upload the appraisal into Fannie Mae Uniform
Collateral Data Portal (UCDP) system prior to submission to
underwriting.
For delegated lenders, it must be uploaded prior to approving
the loan.
Correspondent lenders must provide a copy of the Submission
Summary Report (SSR) form showing a successful status with a
doc file ID along with the UAD compliance form and any
proprietary appraisal messages. Lenders shall submit any
additional documentation relating to these findings.
All Conventional Appraisals must be in compliance with
Appraisal Independence Requirements (AIRS). KHC will accept
transferred appraisals as long as in compliance with AIRS.
Appraisal Ordering Process for Third Party
Originator Lenders
Bluegrass Appraisal Management, Inc. must be used for all FHA
and Conventional appraisal requests for the Third Party
Originator (TPO) lenders. TPO lenders need to get set up with
•
Complete a case number request for FHA Loans and
e-mail to [email protected] with a copy of the
purchase contract. KHC will e-mail the case number to the
TPO lender.
•
TPO lenders will order appraisal through Bluegrass
Appraisal Management’s Web site at
www.bgappraisalmanagement.com.
•
TPO lenders will pay for this service at time of the initial
request with a credit card. Due to MDIA regulations the
lender must pay for this and not the borrower.
•
TPO lenders can track the progress of the appraisal online.
•
Once the appraisal is completed, an e-mail will be sent to
both the TPO lender and KHC giving access to the
appraisal.
•
KHC will underwrite the appraisal and upon completion will
notify TPO lender via e-mail. If the loan is a FHA loan, the
Conditional Commitment will be attached to the e-mail.
•
KHC will directly send a copy of the appraisal by mail or
electronically to the consumers within a week of completion
and review by the KHC underwriting department.
•
If a final inspection is required, the TPO lender will be
responsible for ordering this through Bluegrass Appraisal
Management, Inc.
•
At closing, the TPO lender will collect the appraisal fee and
any final inspection fees from the borrower. The fee for the
appraisals will be $450 for FHA and $410 for Conventional
loans.
Originating lenders may collect the appraisal fee from the
borrower if in compliance with MDIA. Originating lenders will be
responsible for payment on all appraisal requests. FHA
Appraisals are good for 120 days.
Property Eligibility
Residence – one-unit, single-family dwelling, new or existing
property located in Kentucky
• MRB Purchase price limit of $265,000
• KHC requires a full appraisal
Acreage
•
Up to one acre of land.
•
If more than one acre, an Acreage Waiver (KHC Form 90) must
be obtained.
Repairs
All repairs required as part of appraisal must be completed prior to
closing and inspected by appraiser or appropriate fee inspector.
Termite Report
Kentucky Housing Corporation will follow the insuring agency
guidelines.
•
If termite report has been done, KHC requires a copy of
the report. If the report shows damage to foundation,
main beams, etc., and/or water in crawl space/basement,
this must be addressed. All infestation must be treated
and proof of treatment must be provided. Structural
damage inspections may be provided by a structural
engineer or FHA fee inspector.
•
If the borrower has waived having a termite inspection,
the Kentucky Housing Corporation Termite Inspection
Waiver (Form 99) must be signed at closing.
Mortgage Revenue Bond Programs–KHC Program Guide–March 20, 2015
Page 5 of 10
Kentucky Housing Corporation – www.kyhousing.org – 502-564-7630, extension 291
•
A termite soil treatment certificate (Form NPCA 99A and
99B) is required on all new construction properties except on
conventional loans.
Applicants not required by law to file a tax return during past
three years must identify the year not required to file in the
Mortgagor Certification of Eligibility (Form 6).
Lender must examine tax returns for any evidence
applicant claimed deductions for property taxes or
mortgage interest, indicating previous ownership of
principal residence. Lender should review all income
claimed, household size, and whether property was used in
trade/business.
Property and Business Use
Property may not be used in any manner that permits any
portion of the cost of the home to be deducted as trade or
business expense for federal income tax purposes, or if more
than 15 percent of total living area is used primarily in trade or
business.
•
Federal Recapture Tax
If using Kentucky Housing MRB funds, borrower may be
subject to Federal Recapture Tax. However, for all loans
closed on or after October 1, 2006, Kentucky Housing will
reimburse borrowers subject to the Recapture Tax.
Reimbursement guidelines can be found on Kentucky
Housing Form “Federal Recapture Tax Reimbursement
Policy Disclosure/ Application.”
•
Mortgagor and Seller Certifications Kentucky Housing
Mortgagor and Seller Certifications are required (Kentucky
Housing Forms 6 and 7).
New Construction
For FHA, VA, and RHS, a one-year building warranty is
required. Also a ten-year warranty with final inspection; or three
inspections; or building permit, certificate of occupancy, and
photos required.
Manufactured Housing
•
•
•
Only new manufactured housing is permitted with RHS. New
and existing single and doublewide manufactured homes are
acceptable with FHA and VA.
Affidavit of Conversion to Real Estate is required. Must have a
valid title or certificate of origin to prepare affidavit. Copy of the
cancelled or surrendered title and ALTA 7 endorsement to title
policy is required.
For New Construction –obtain Certificate of Origin (in
Underwriting package), then apply for title of loan, then do
Affidavit of Conversion.
Condominiums
Condominium or planned unit developments must follow agency
guidelines. For FHA, condominium must be listed on HUD’s
Web site as an approved condominium. For Conventional,
condominiums must meet Fannie Mae guidelines. Please
review KHC’s condo listing on the Web. This list is to determine
if additional interior insurance coverage is required. This does
not warrant that the condo is approved by any insuring agencies
or KHC. If condo is not listed, KHC requires proof of whether
the interior coverage is included in the master policy. If not, a
separate interior policy equal to half of loan amount is needed.
First Mortgage Funding Sources
All loans are fixed with a 30-year term.
Mortgage Revenue Bond (MRB) Eligibility
First-time home buyers in non-targeted counties are eligible.
For all targeted counties (see Appendix F for list of targeted
county map on Web site) all first- or second-time home buyers
are eligible.
Previous Homeownership
Applicants obtaining MRB funds cannot have had ownership
interest in their principal residence during the three-year period
prior to the KHC loan closing date. This does not apply if the
home is in a targeted area or if the applicant owned a
manufactured home and is granted a waiver using KHC Form 3.
•
Federal Tax Return Requirement
Applicants purchasing in non-targeted county must provide
the most recent three years’ signed federal taxes, if they had
to file. For targeted areas no tax returns are required.
IRS 1040-EZ form is acceptable for any tax year. Computer
printouts of IRS forms that include tax year and each line item
of IRS form are acceptable if applicant has signed printouts.
Internet transcripts provided by IRS, with an IRS code at top
and an IRS stamp on them are acceptable. IRS form 8453 is
not acceptable. Borrowers can obtain tax returns by
calling 1-800-829-1040.
FHA 203K Streamline Program
The FHA 203K Streamline Program is the primary program for
the rehabilitation and repair of single-family housing. The
program provides up to $35,000 toward repair/rehabilitation of
the property.
• All standard FHA borrower and credit underwriting guidelines
apply.
• Combines funds needed to purchase along with funds needed
to repair or rehabilitate. A 10-20 percent contingency is
required on all FHA 203K Streamline loans. With TPO
Lenders, KHC requires a minimum of 10 percent contingency.
Correspondent Lender can charge 10-20 percent. The 10-20
percent contingency has to be inclusive of the $35,000.
• TPO Lender is given three months for a borrower to complete
all work. Correspondent Lender may follow agency
guidelines of six months for a borrower to complete all work.
• Regular and Affordable DAP can be used with the FHA 203K
Streamline Program.
• A Supplemental Origination Fee must be charged by all TPO
lenders. It is calculated as the greater of $350 or 1.5 percent
of repair cost. This fee must be reflected on the GFE. This
fee will be paid to KHC for the overseeing of the repair
escrows.
• Follow FHA Agency Guidelines for eligible/ineligible repairs.
• Correspondent Lender will be responsible for overseeing the
repair escrow accounts. The Correspondent Lender may
charge a supplemental origination fee (the greater of $350
or 1.5 percent of rehabilitation cost).
• KHC’s has a Web page dedicated to FHA 203K Streamline
Program on the Lender Services page.
MRB Special Funding Program
Effective with reservations as of March 5, 2015, on a first
come, first served basis.
Gross Annual Household Income of $35,000 or less and meet
one of the following population requirements:
At least one home buyer is age 62 or older;
At least one member of the household is disabled and is
receiving disability income;
A single- or two-parent household with at least one dependent
child under the age of 18 living in the home
Mortgage Revenue Bond Programs–KHC Program Guide–March 20, 2015
Page 6 of 10
Kentucky Housing Corporation – www.kyhousing.org – 502-564-7630, extension 291
Eligibility:
$115,000 Purchase Price Limit (new or existing construction)
First time Home buyers unless located in a targeted county
Regular & Affordable DAP available
640 minimum credit score
FHA, VA or RHS first mortgage options
AUS Approval required (except RHS)
40/45% Max ratios
Section 8 Voucher to Homeownership
Eligible Section 8 participants may use their Housing Choice
Voucher to assist them in purchasing a home. The term of
assistance is 15 years, unless elderly or disabled.
Housing Voucher assistance can be used two different ways.
See the Section 8 Calculator on Kentucky Housing’s Web site.
• Counted as Income (FHA, RHS, and VA)
 Added to the gross monthly income for determining ratios
(can gross up 15 percent).
• Counted as a PITI Reduction (FHA and RHS)
 A reduction of PITI (added to qualifying ratio based on
gross earnings only, no grossing up).
• Minimum credit score policy of 640 is required.
• AUS requirement is waived.
Assumability
All Kentucky Housing Corporation MRB loans except
Conventional are assumable provided buyer meets
requirements set out in the Tax Exempt Financing Rider
attached to the mortgage.
First Mortgage Term and Rate
• Term – Fixed for 30 years.
• Rate – Subject to change on a daily basis.
Rate Lock Extension Policy
• Reservations for MRB first mortgages, Regular and Affordable
DAP loans can be made anytime through KHC’s Web site,
http://www.kyhousing.org.
• New and existing property (45-day rate lock term).
• Must have property identified.
• Each buyer may have only one current reservation.
• Must close within the 45-day lock.
• Any change to loan amount over a 10 percent tolerance may
result in a higher interest rate.
• A second reservation may not be issued unless initial
reservation has been expired or cancelled for 30 days or the
borrower has changed property.
• Locks that expire on the weekend or holiday will automatically
be extended to the following business day.
• KHC will monitor loan fall out.
• Reservation Extension Policy:
• 1-15 days for .25 percent fee
• 16-30 days for .50 percent fee (total for 30-days
extension)
• Once the loan has reached the 30-day extension period, the
lender will be required to relock the loan based on the higher
of the original interest rate or market rate for 45 days with no
additional fees.
• Property Change–If the borrower changes property, the current
interest rate is cancelled and a new reservation has to be made
at the market interest rate.
• For adjustments, lender must call (800) 633-8896, ext. 291 or
e-mail [email protected] to have a change made.
Automated Underwriting
• Prior to closing, Kentucky Housing Corporation or its delegated
underwriter must still approve all loans approved by AUS.
•
KHC will accept limited documentation required by AUS with
a few exceptions. KHC requires:
 No LP allowed with Conventional No MI or With MI
Product
 Contact KHC if sponsorship is needed for DU access.
 Appraisal – Full appraisals required on all loans.
 All income documented.
• KHC requires AUS approval on all FHA, VA and Conventional
loans. Exceptions may be made for Section 8 to
Homeownership (if loans still meet agency guidelines).
• For all DAP loans, the amount must be shown as subordinate
financing in AUS.
• KHC will accept GUS findings on RHS loans as well as the
reduced documentation detailed within.
• Any additional fees charged to Kentucky Housing by Fannie
Mae as a result of errors or loans not closed with KHC will be
billed to the lender for reimbursement.
Loan Review Process
Kentucky Housing Corporation will attempt to review the file
within 2-4 business days of receipt. KHC will notify the lender of
loan approval, pended loan, or rejection status by e-mail to the
e-mail address identified by the lender at the time reserved.
• The e-mail will identify borrower’s name and status of loan.
Approvals, rejections, and listings of pended items can be
printed from the Web site.
• All conditions of loan approval must be met prior to or at
closing. Proof that all conditions have been met must be
provided in closed loan package submitted to Kentucky
Housing.
Conventional Fannie Mae Requirements for
Correspondent Lenders
Correspondent lenders must comply with all Fannie Mae
requirements for origination, processing, underwriting, prefunding review, closing, and post-closing. Lenders must comply
with pre-funding requirements of a sample prior to closing. Any
significant findings must be reported to KHC within 30 days.
Lenders must ensure that all loans are NOT considered High
Priced Mortgage Loans. KHC will NOT purchase a High Priced
Mortgage Loan. Lenders will obtain most recent year of tax
transcripts on all borrowers and verify employment on all
borrowers within 10 days prior to the note date. Lenders will
also upload appraisal to the Uniform Collateral Data Portal
(UCDP) System.
Conventional Fannie Mae Requirements for Third
Party Originator Lenders
TPO’s will be required to obtain most recent year of tax
transcripts prior to underwriting. Verification of employment on
all borrowers must be done within 10 days prior to the note date.
KHC will perform the 10 percent pre-funding sample and
uploading of appraisal to the Uniform Collateral Data Portal
(UCDP) System.
Mortgage Revenue Bond Programs–KHC Program Guide–March 20, 2015
Page 7 of 10
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
Regular
Affordable
MRB
Affordable Income
(Household Income)
New and Existing Properties
New and Existing Properties
Up to $6,000
Must go maximum allowed LTV on
first mortgage amount
Up to $4,500
Must go maximum allowed LTV on
first mortgage amount
5.50% amortized over 10 years
1% amortized over 10 years
Income Eligibility
Eligible Properties
Amount
Terms
MRB Purchase
Price Limit
AUS
Ratios
Required Repairs
$265,000
Enter as Subordinate Financing
AUS Approval required
Borrower must qualify with additional monthly payment.
With AUS approval, can go up to 40/45 percent
Buyer or seller may use OWN funds to pay for repairs and pay off existing
debt
DAP GFE & TIL
Available in Loan Connection Services--$50 Document Preparation Fee to
closing agent and $25 (estimated) Recording Fee
When utilizing Regular or Affordable DAP with the Conventional Product, if unable to get a DU
Approve/Eligible at a 97% LTV with DAP, then you may lower first mortgage down to 95% LTV.
Mortgage Revenue Bond Programs–KHC Program Guide–March 20, 2015
Page 8 of 10
KENTUCKY HOUSING CORPORATION
2015 MRB GROSS ANNUAL HOUSEHOLD INCOME LIMITS
Effective March 20, 2015
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: Mortgage Revenue Bond (Purchase Price Limit – $265,000)
Person(s) per household
Anderson
Ballard
Barren
Boone
Bourbon
Boyd
Bracken
Bullitt
Caldwell
Calloway
Campbell
Christian
Clark
Daviess
Edmonson
Fayette
Franklin
Gallatin
Graves
Greenup
Hancock
Hardin
Henderson
Henry
Hickman
Jefferson
Jessamine
(1 or 2)
(3 or more)
68,600
78,890
55,800
64,170
55,800
64,170
71,200
81,880
81,840
95,480
55,800
64,170
85,440
99,680
64,100
73,715
55,800
64,170
58,700
67,505
71,200
81,880
55,800
64,170
81,840
95,480
57,500
66,125
72,720
84,840
68,200
78,430
62,200
71,530
85,440
99,680
55,800
64,170
55,800
64,170
57,500
66,125
59,600
68,540
63,400
72,910
76,920
89,740
67,080
78,260
64,100
73,715
68,200
78,430
For all other counties not listed above:
Person(s) per household
Kenton
Larue
Laurel
Livingston
Lyon
Madison
Marshall
McCracken
McLean
Meade
Mercer
Muhlenberg
Oldham
Owen
Pendleton
Scott
Shelby
Simpson
Spencer
Taylor
Trigg
Trimble
Union
Warren
Webster
Woodford
$66,960 (1 or 2 persons)
Mortgage Revenue Bond Programs–KHC Program Guide–March 20, 2015
(1 or 2)
(3 or more)
71,200
81,880
71,520
83,440
55,800
64,170
55,800
64,170
55,800
64,170
68,520
79,940
59,500
68,425
60,400
69,450
69,000
80,500
55,800
64,170
59,100
67,965
55,800
64,170
64,100
73,715
74,880
87,360
85,440
99,680
81,840
95,480
72,900
83,835
55,800
64,170
76,920
89,740
55,800
64,170
55,800
64,170
76,920
89,740
55,800
64,170
60,600
69,690
76,080
88,760
68,200
78,430
$78,120 (3 or more persons)
Page 9 of 10
2015 GROSS ANNUAL HOUSEHOLD
AFFORDABLE DAP INCOME LIMITS
Effective March 20, 2015
Purchase Price Limit for AFFORDABLE DAP– Secondary Market Funding: $294,000 MRB Funding: $265,000
(1)
(2)
(3)
(4 or more)
Bath, Bell, Breathitt, Casey, Clay, Clinton, Cumberland, Elliott, Estill, Floyd, Fulton,
Grayson, Green, Harlan, Hart, Jackson, Johnson, Knott, Knox, Lawrence, Lee, Leslie,
Lewis, Lincoln, Magoffin, Martin, McCreary, Menifee, Metcalfe, Monroe, Montgomery,
Morgan, Ohio, Owsley, Perry, Pike, Powell, Pulaski, Rockcastle, Russell, Wayne, Whitley,
and Wolfe
Counties
Person(s)
25,700
25,400
33,050
36,700
Bullitt, Henry, Jefferson, Oldham, Spencer, and Trimble
35,950
41,050
46,200
51,300
Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford
38,200
43,650
49,100
54,550
Boone, Bracken, Campbell, Gallatin, Kenton, and Pendleton
39,900
45,600
51,300
56,950
(1)
(2)
(3)
(4 or more)
Other Counties
Person(s)
(1)
(2)
(3)
(4 or more)
29,650
30,850
33,350
34,700
37,050
38,550
Larue
33,400
38,200
42,950
47,700
Allen
25,950
27,000
Laurel
25,900
29,600
33,300
36,950
Anderson
38,450
43,950
49,450
54,900
Letcher
26,000
29,700
33,400
37,100
Ballard
30,750
35,150
39,550
43,900
Livingston
27,650
31,600
35,550
39,450
Barren
28,300
32,350
36,400
40,400
Logan
27,900
31,900
35,900
39,850
Boyd
30,250
34,600
38,900
43,200
Lyon
30,750
35,150
39,550
43,900
Boyle
28,500
32,600
36,650
40,700
Madison
32,000
36,600
41,150
45,700
Breckinridge
28,150
32,150
36,150
40,150
Marion
28,250
32,250
36,300
40,300
Butler
26,400
30,200
33,950
37,700
Marshall
33,350
38,100
42,850
47,600
Caldwell
27,250
31,150
35,050
38,900
Mason
29,300
33,500
37,700
41,850
Calloway
32,900
37,600
42,300
46,950
McCracken
33,850
38,650
43,500
48,300
Carlisle
26,400
30,200
33,950
37,700
McLean
32,200
36,800
41,400
46,000
Adair
Person(s)
Carroll
28,400
32,450
36,500
40,550
Meade
28,800
32,900
37,000
41,100
Carter
26,000
29,700
33,400
37,100
Mercer
33,150
37,850
42,600
47,300
Christian
28,850
32,950
37,050
41,150
Muhlenberg
26,900
30,750
34,600
38,400
Crittenden
29,200
33,350
37,500
41,650
Nelson
30,950
35,350
39,750
44,150
Daviess
32,200
36,800
41,400
46,000
Nicholas
26,400
30,200
33,950
37,700
Edmonson
33,950
38,800
43,650
48,450
Owen
34,950
39,950
44,950
49,900
Fleming
27,650
31,600
35,550
39,500
Robertson
28,950
33,100
37,250
41,350
Franklin
34,850
39,800
44,800
49,750
Rowan
26,700
30,500
34,300
38,100
Garrard
31,050
35,450
39,900
44,300
Shelby
40,850
46,650
52,500
58,300
Grant
31,200
35,650
40,100
44,550
Simpson
30,200
34,500
38,800
43,100
Graves
28,950
33,100
37,250
41,350
Taylor
26,450
30,200
34,000
37,750
Greenup
30,250
34,600
38,900
43,200
Todd
27,750
31,700
35,650
39,600
Hancock
32,200
36,800
41,400
46,000
Trigg
28,850
32,950
37,050
41,150
Hardin
33,400
38,200
42,950
47,700
Union
28,300
32,350
36,400
40,400
Harrison
30,450
34,800
39,150
43,450
Warren
33,950
38,800
43,650
48,450
Henderson
35,500
40,600
45,650
50,700
Washington
Webster
28,750
35,500
32,850
40,600
36,950
45,650
41,050
50,700
Hickman
31,300
35,800
40,250
44,700
Hopkins
30,050
34,350
38,650
42,900
Mortgage Revenue Bond Programs–KHC Program Guide–March 20, 2015
Page 10 of 10