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KeyBank’s Key Community Mortgage

Update on KeyBank’s 100% Financing Program:

In my last post about this topic, I referred to this as a “new” program. After meeting with Kristin Shields and Will Mullin, KeyBank Mortgage Advisor and Relationship Manager respectively, I know now that Key has had this program in place for +/- four years.

Disclaimer: The information that I am sharing here is NOT to promote KeyBank. As a professional REALTOR®, representing both buyers and sellers, it is my responsiblity to have a broad knowledge of available financing to achieve my client’s home ownership (or home sale) goals. Lender guidelines vary, the most significant of which is FICO score minimums. I have experienced some lender FICO requirements as high as 720. KeyBank’s 620 benchmark is extremely borrower friendly.

The 100% program is actually called the “Key Community Mortgage“. I entered the meeting a skeptic. I left a believer. And I can’t wait to share this incredible financing opportunity with my clients. No other lender that I am aware of is offering a truly obtainable community mortgage such as this. I was even able to get a glowing recommendation about the program from a title officer who I know and trust, who has successfully closed a Key Community Mortgage.

Meeting Summary

Question: Why is KeyBank offering this program? It seems too good to be true, or too good to last.
Answer: This is Key’s way of meeting federal requirements for community investment.

Question: What does this mean, realistically, in terms of purchase price and interest rate, for the borrower?
Answer: A $500 minimum investment, approximately .25% add on to the interest rate (example: yesterday’s rate was 5.25% = .25% over yesterday’s VA rate), and, based on income guidelines, works ideally on a purchase price up to $180,000.

Question: Are the funds available for this program limited, capped or budgeted?
Answer: NO

Cool Program Details

  • Minimum FICO score is 620. This is also true for their FHA and VA loans.
  • Income limits are based on Borrower’s Income only, not Household Income, which is problematic sometimes with Utah Housing Loans (another 100% option)
  • Income limits do not apply in Target Areas (refer to the program guide, pages 6-9, to determine tract income level of subject property and financing guidelines)
  • No First Time Homebuyer Requirement
  • No Mortgage Insurance, so the .25% rate add is a non-issue
  • Can be used to refinance at 90% CLTV
  • And, the coolest of the cool, is that each Key Community Mortgage is manually underwritten. Aha! A lender that realizes that a person, and their life, cannot simply be reduced to a three digit number and an underwriter guideline.
  • For More Information Contact:
    Kristin Shields, Mortgage Advisor
    Phone: 801-792-2625
    Fax: 216-370-9481
    Email: Kristin_Shields@KeyBank.com

    Tell Her You Read About the Program Here!

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    Key Bank Introduces New 100% Loan Product

    I’m looking forward to a luncheon at Key Bank on Thursday, December 16th, as they introduce their new 100% financing loan product. .25% rate add, no mortgage insurance, 620 FICO score with no lates in past 12 months, income cap at $51,000. No first time homebuyer restrictions.

    Hope this provides some of my clients with an option for financing that they wouldn’t otherwise have.

    This is a conventional program that seems to offer a borrower more flexible guidelines to meet than Utah Housing, or even the standard FHA loan. Debt ratio not to exceed 42%. There is a minimum borrower’s investment of $500, which could be in the form of the buyer’s earnest money deposit.

    Follow up to be posted.

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