Definitions:

Number of people in household
This is the number of people who intend on occupying your new home. An individual is deemed to be occupying the property if they live at the residence 50% of the time.

Construction Type
A dwelling can be new or existing. A home which is less than one year old and has never been occupied is designated as a New home. A home which has been previously occupied is designated as an Existing home.

Interest Rates
Regular rate - homebuyer will be charged 1 1/2 - 2% points as part of their closing costs.
Zero Point - homebuyer pays a higher interest rate, but no points are charged at closing.

Monthly Income
This is your base monthly income before taxes. If you wish to include commissions or overtime for qualifying purposes, you must show that you have been receiving this income for the last two years. Below are examples for computing your monthly gross income.

Example #1
John makes $7.50/hour and works 40 hours each week.
Hourly Rate:	7.50
Multiply: Hours per Week:	40
Weekly Income	300.00
Multiply: Weeks in Year	52
Annual Income	15,600.00
Divide: Number of months	12
Monthly Gross Income	1,300.00

Example #2
Karen gets paid $800 every other week.
Bi-weekly Salary:	800.00
Multiply: Pay Periods in Year	26
Annual Income	20,800.00
Divide: Number of Months	12
Monthly Gross Income	1,733.33

Example #3
Andy is a car salesman, who works on straight commission. He has   worked at the same job and dealership for the last three years.   His income can vary on a monthly basis.  For tax year 2003 and   2002, Andy earned $45,000 and $32,000, respectively.
2003 Income	45,000.00
2002 Income	32,000.00
Average Annual Income	38,500.00
Average Monthly Income	3,208.33

Co-borrower Monthly Income
Calculated same as above by using co-borrower information.

Other Monthly Income
This is income typicaly not reported through a W-2 or 1099. Other monthly income would include SSI, Child Support, etc.

Auto Loans
The total minimum monthly payment on your automobile(s).

Student Loans
The total minimum monthly payment required on your Student Loan(s).

Credit Cards
The total minimum monthly payment required on you credit card(s).

Other Debt
The total of all other minimum monthly payments related to installment loans, personal loans, or other extension of credit. This does not include car insurance, utilities, or other necessary living expenses.

Conventional loan

1. Minimum credit score of 660 or better.
2. Quick turnaround time, 20 percent down payment.
3. Appraisals are less stringent and less expensive.
4. No down payment assistance products may be used.

FHA Loan

1. Insured by the Federal Housing Administration.
2. Down payments as little as 3.5 percent.
3. Minimum 640 credit score is required.

VA Loan

1. Guaranteed by the Veterans Administration for qualified military veterans.
2. No down payment if the property appraises for the sale price or greater.
3. Minimum 640 credit score.
4. No monthly mortgage insurance payments.

RHS Loan

1. Guaranteed by Rural Housing Services (RHS).
2. Home must be located in a rural area as defined by RHS.
3. Minimum 640 credit score.
4. No monthly mortgage insurance payments.
5. Financing to 100 percent of the appraised value, plus guarantee fee of 3.5 percent.

Annual Percentage Rate (APR)
The yearly cost of a mortgage, including interest, mortgage insurance, and the origination fee points, expressed as a percentage.

Regular Down payment Assistance Program (DAP)

1. Assistance up to $4,000.
2. Available to all KHC first mortgage loan recipients.
3. Repaid over 7 years at an interest rate of 6 percent.

HOME-DAP

1. Assistance up to $4,500
2. No monthly repayment; forgiven over five years.
3. Existing homes only.
4. Borrowers must meet HOME-income guidelines.