  We present a new 3d self-consistent two-component (plasma and neutral
hydrogen) model of the solar wind interaction with the local interstellar
medium (LISM). This model (K-MHD) combines the MHD treatment of the solar wind
and the ionized LISM component, with a kinetic model of neutral interstellar
hydrogen (LISH). The local interstellar magnetic field (BLISM) intensity and
orientation are chosen based on an early analysis of the heliosheath flows
(Opher et al. 2009). The properties of the plasma and neutrals obtained using
the (K-MHD) model are compared to previous multi-fluid (Opher et al. 2009) and
kinetic models (Izmodenov et al. 2005). The new treatment of LISH revealed
important changes in the heliospheric properties not captures by the
multi-fluid model. These include a decrease in the heliocentric distance to the
termination shock (TS), a thinner heliosheath and a reduced deflection angle
({\theta}) of the heliosheath flows. The asymmetry of the termination shock,
however, seems to be unchanged by the kinetic aspect of the LISH.
