Buying a newly built home from KB Home comes with a lot of moving parts. You pick the floor plan, choose the finishes, and then you have to figure out the mortgage. That last part is where KBHS Home Loans enters the picture. It’s a joint venture between KB Home and Guaranteed Rate (the company now known simply as Rate). The idea is simple: give KB Home buyers a one-stop shop for financing, with potential perks you won’t get from an outside lender. But is it actually a good deal? Let’s break it down.
What Exactly Is KBHS Home Loans?
KBHS isn’t a bank you can walk into. It’s a mortgage lender created specifically to serve buyers of KB Home properties. The joint venture launched in 2016, originally with Stearns Lending. After Guaranteed Rate acquired Stearns in 2021, KBHS became a partnership between KB Home and Guaranteed Rate—now Rate. So when you apply through KBHS, you’re working with a lender that has a direct line to your builder. That matters because new construction deals have tight timelines and unique requirements. A lender that already knows the drill can keep things moving.
You’re never required to use KBHS. Federal law gives you the right to shop for any lender. But KB Home often dangles incentives to encourage you to use their affiliated company. We’ll get to those.
How KBHS Works Alongside KB Home
The integration is the main selling point. Your KB Home sales counselor can introduce you to a KBHS loan officer early in the process—often before you’ve even signed a purchase contract. That early pre-qualification helps you know your budget and shows the builder you’re a serious buyer.
From there, KBHS handles your loan application, underwriting, and closing. Because they work exclusively with KB Home, they’re familiar with the specific communities, the construction schedules, and the contract details. That can mean fewer surprises and faster responses when the builder needs an update.
The Preferred Lender Advantage (and the Fine Print)
KB Home calls KBHS its ‘preferred lender.’ That doesn’t mean you get a discount just for asking. The real advantage comes from bundled incentives. For example, KB Home frequently advertises closing cost credits—sometimes several thousand dollars—if you finance through KBHS and use their affiliated title and escrow company. Those credits can be applied to closing costs, rate buy-downs, or even upgrades.
Read the fine print, though. Incentives vary by community, by market, and by the specific home. Some may require you to use a particular loan type. Others may expire if you don’t close by a certain date. Always ask your sales counselor for the exact offer in writing.
Loan Programs You Can Get Through KBHS
KBHS offers a range of loan products, similar to what you’d find at a traditional mortgage lender. Here are the main ones:
- Conventional loans: Best for buyers with good credit and a down payment of at least 3-5%. These aren’t backed by the government.
- FHA loans: Insured by the Federal Housing Administration. They allow down payments as low as 3.5% and more flexible credit requirements.
- VA loans: For eligible veterans, active-duty service members, and surviving spouses. Often require no down payment and no monthly mortgage insurance.
- USDA loans: For homes in eligible rural areas. Zero down payment for qualifying buyers.
- Jumbo loans: For loan amounts that exceed conforming limits (which vary by county). Useful in high-cost markets.
KBHS may also offer down payment assistance programs in certain markets. Ask your loan officer what’s available where you’re buying.
The Application and Underwriting Process
Applying through KBHS is similar to any other lender, but with a few builder-specific twists. Here’s the typical flow:
- Get pre-qualified: You can do this online or over the phone. It usually takes 15-30 minutes and requires basic income and asset info.
- Submit documents: Pay stubs, W-2s, tax returns, bank statements. KBHS has an online portal where you upload everything securely.
- Underwriting: An underwriter reviews your file and may ask for additional documents. This can take a week or more.
- Rate lock: Once you have a purchase contract, you can lock your rate. New construction timelines can be long, so ask about extended lock options.
- Closing: You’ll sign final papers, usually at the title company. KBHS coordinates with the builder to schedule this around your home’s completion.
One thing to know: KBHS loan officers are used to working with KB Home’s construction schedules. If your home is delayed, they can often extend your rate lock or adjust your closing date without a lot of drama.
Costs and Fees: What to Expect
Every mortgage comes with closing costs—typically 2-5% of the loan amount. That covers the appraisal, title search, title insurance, recording fees, and lender origination fees. KBHS is no exception.
The difference is that KBHS may waive or reduce certain fees if you’re using their incentives. For example, some KB Home communities offer a credit that covers a specific dollar amount of closing costs. That can make KBHS more competitive than an outside lender, even if their base interest rate is slightly higher.
Your best move is to compare. Ask KBHS for a Loan Estimate, then ask one or two other lenders for theirs. Put them side by side. Look at the interest rate, the points, the origination fee, and the total closing costs. Don’t just compare the rate—compare the whole package.
Pros and Cons of Using KBHS Home Loans
- Pros: Streamlined coordination with your builder. Potential closing cost credits. Familiarity with KB Home contracts and timelines. Dedicated loan officers who only work with KB Home buyers.
- Cons: Rates may not always be the lowest. Incentives often require using affiliated title and escrow services. Limited to KB Home purchases—you can’t use KBHS for a resale home. Less flexibility if you have a complex financial situation.
Who KBHS Is a Good Fit For (and Who Should Look Elsewhere)
KBHS tends to work well for first-time buyers who want a guided experience and plan to use KB Home’s incentives. It’s also a solid choice for buyers who value speed and coordination over squeezing out the absolute lowest rate.
You might want to shop around if you have a unique income situation (self-employed, multiple properties, recent credit issues), or if you’re buying in a market where outside lenders are offering aggressive rates. Some credit unions and online lenders beat KBHS on price, especially if you don’t need the builder’s closing cost credit.
Questions to Ask Before You Commit
Before you sign anything with KBHS, get clear answers to these:
- What exactly is the closing cost credit, and what are the conditions?
- Do I have to use your affiliated title company to get the credit?
- What loan programs am I eligible for, and which one fits my situation best?
- Can you match or beat a rate I’ve been offered elsewhere?
- How long can you lock my rate, and what happens if construction is delayed?
- Are there any fees that are specific to KBHS or new construction loans?
Ask for everything in writing. A good loan officer will welcome the questions. If you feel pressured to skip the comparison shopping, that’s a red flag. You have the right to choose your lender, and the right to walk away if the numbers don’t work for you.