Funds Still Available!

KHC still has over $3 million in special funding available at 2.00 percent fixed interest rate for 30 years! The Mortgage Revenue Bond (MRB) Special Funding Program is available on a first-come, first-served basis with new reservations only. The MRB Special Funding Program flier is available on KHC's website, under Lenders, Marketing Tools.

Student Loan - Underwriting Tips

There have been many recent changes in the mortgage industry regarding student loans. KHC follows guidelines from the agencies, but thought it would help to highlight some of these changes.  

Fannie Mae

For all student loans, whether deferred, in forbearance, or in repayment (not deferred), the lender must use the greater of the following to determine the monthly payment to be used as the borrower's recurring monthly debt obligation:

• 1 percent of the outstanding balance.
• The actual documented payment per credit report or documentation, either from the student loan lender or supplied by the borrower.

Please note: If the payment currently being made cannot be documented or verified, 1 percent of outstanding balance must be used.

Exception: If the actual documented payment is less than 1 percent of the outstanding balance and it will fully amortize the loan with no payment adjustments, the lender may use the lower, fully amortizing monthly payment to qualify the borrower. 

Income Based Repayment (IBR) plans, graduated plans, adjustable rates, interest-only, and deferred plans are examples of repayment plans that are subject to change and do not qualify for the exception.

FHA

If the actual monthly payment is zero or is not available, the lender must utilize 2 percent of the outstanding balance to establish the monthly payment.  

Exception: If the student loan is an IBR plan, the lender can use that payment amount or zero (if showing a zero monthly payment).

RHS

Lenders must include the greater of 1 percent of the outstanding loan balance or the verified fixed payment as reflected on the credit report.

Exception: Monthly payment amounts listed on the credit report, less than 1 percent of the outstanding balance, may be used when evidence from the loan servicer is obtained indicating the applicant is on a fixed repayment plan not subject to change under the terms of the current agreement, and the monthly payment amount due.  

IBR plans, graduated plans, adjustable rates, interest-only, and deferred plans are examples of repayment plans that are subject to change and do not qualify for the exception.  

VA

If student loan repayments are scheduled to begin within 12 months of the date of the VA loan closing, lenders should consider the anticipated monthly obligation in the loan analysis. If the borrower is able to provide evidence that the debt may be deferred for a period outside that timeframe, the debt need not be considered in analysis.

Closing and Post Closing Tips

KHC is experiencing high volume in our closing and post-closing area due to many of the Hardest Hit Fund (HHF) Down payment Assistance Program (DAP) loans having closed. Below is a list of tips to expedite the purchase or closing of your loan.

Delegated and Correspondent Lenders

• Upload the Closed Loan Package within 10 days of closing
• Especially on loans closed at the end of the month
• Mail ORIGINAL note(s)
• CD for DAP required for purchase
• For conventional loans VOE required within 10 days prior to loan closing (not after)

TPO Lenders

• Ensure MERS language is on the Title Commitment and dated within 30 days of closing
• Loan Officers to sign the Final 1003 sent to the Closing Agent
• Rate Lock Extensions require a Change of Circumstance (COC) and new Loan Estimate (LE)
• Complete Closing Agents Fee Sheet

KHC's Loan Reservation System Updates

Delegated and Correspondent Lenders will now have the option to select "We intend to transfer servicing of your loan" on the TILA-RESPA Screen when preparing the Loan Estimate for the DAP.

KHC Offices Closing

KHC offices will close at noon on Friday, March 25, 2016, in observance of Good Friday. KHC wishes you and yours a happy Easter!

Please note, TPOs sending a closing date request after noon on Friday, March 25, will not be processed until Monday, March 28. Therefore, the first available closing date would be Friday, April 8, subject to availability.

KHC 2015 Annual Impact Report

KHC had another great year! We have produced a report that highlights our achievements, as well as explains how housing is a part of the foundation that encourages families and communities to succeed.

KHC's 2015 Annual Impact Report illustrates the benefits of our programs and projects over the past year by showcasing success stories across Kentucky. Although we are a self-supporting, quasi-governmental agency that invests in affordable housing solutions for Kentuckians, we are successful because of our partnership with federal, state, and local agencies.

The 2015 Annual Impact Report is available on KHC's website, under Resources, Data Library, Annual Reports. For the first time, the report has been translated into Spanish and is available on KHC's website, under Espaņol.

We look forward to another great year and thank you for your support.