FULL 203(k)

DESCRIPTION: minor or major renovation projects including property additions such as dormers, extensions, unit conversions, structural/cosmetic/upgrades (i.e.elimination of health and safety issues such as termites, mold, modernization of kitchens, appliances, bathrooms, floors, walls, painting, trim work, replacements of windows, doors, siding, walkways, driveways, major landscape and site
improvements, alterations for handicap accessibility).

REPAIR AMOUNTS: Minimum amount of repairs $5,000. The maximum amounts of repairs are only subject to
FHA Loan limits.

CONSULTANTS: All full 203k loans require a 203k work write-up as per FHA guidelines prepared by a HUD Approved consultant. Must be ordered through MIM approved consultant list.

APPRAISAL: All 203k appraisals must be ordered through a MIM approved AMC. Appraisals are subject to the completion of all work as detailed in the final 203k work write-up. All required repairs must be included
within the 203k work write-up as per FHA guidelines.
Note: The 203k work write-up shall be annexed to the appraisal.

CONTRACTORS: Contractors must meet all applicable requirements within the State and Municipality covering the subject transaction. A full list of contractor requirements, documentation and forms to be fully executed are available on the MIM support website.

All work to be performed must be allowed and approved where applicable within the local municipality. All applicable plan approvals and permits must be obtained prior to funds being released.

STREAMLINE 203(k)

DESCRIPTION: Geared towards simpler repairs and repairs that are more minor and cosmetic in nature. New construction or newly constructed repairs and additions are not allowed. (i.e. Upgrading or direct replacements to flooring, tiling, walls, ceilings, doors, direct replacement to roofing, siding, gutters, leaders, downspouts, painting, modernization of kitchens and bathrooms…appliances, improvements of property functions and modernization, upgrade of existing electric/heating/plumbing).
New construction and/or newly constructed repairs and additions
are not allowed.

REPAIR AMOUNTS: There is no minimum repair amount required. The maximum rehabilitation escrow may not exceed
$35,000.

PERMITS: Work requiring permits allowed however any work requiring plan approvals within the local municipalities are not allowed.

CONSULTANTS: 203k consultants are not allowed as part of the streamline program. Borrowers may however obtain the services of a HUD consultant to perform a feasibility report to help plan with the work to be performed on the subject property. Any costs for such services may not be part of the streamline transaction.

APPRAISALS: All 203k appraisals must be ordered through a MIM approved AMC. Appraisals are subject to the completion of all work as detailed in the final contractor’s estimate. All required repairs for health, safety and minimal property standards must be included within the Contractor’s estimate. The final contractors estimate shall be annexed to the appraisal.

CONTRACTORS: Contractors must meet all applicable requirements within the State and Municipality covering the subject transaction. A full list of contractor requirements, documentation and forms to be fully executed are available on the MIM support website.
NOTE: All required and desired repairs must be detailed in the final contactor’s estimate. All repair items must be detailed per line item, and must reflect the breakdown of the costs for material and labor.

All work to be performed must be allowed and approved where applicable within the local municipality. All applicable plan approvals and permits must be obtained prior to funds being released.

NOTE: SUBJECT PROPERTIES WHERE UTILITIES ARE NOT OPERATING AT TIME OF INSPECTION WILL REQUIRE A FULL 203K
PROGRAM.

1. Standard product parameters are applicable to Conforming and High Balance loan amounts.

2. Unless noted otherwise, Specialty product parameters are applicable to Conforming and High Balance loan amounts.

3. Maximum 110% LTV/CLTV for HUD REO with escrow repair transactions.

4. Maximum 100% LTV/CLTV for HUD REO $100 Down Payment program transactions.

5. Maximum 85% LTV for Identity of Interest and Tenant/Landlord transactions.

6. Maximum 75% LTV for non-family member, Non-Occupant Co-Borrower transactions.

7. In some circumstances, subordinate financing/CLTV limits may exceed the applicable LTV limit.

8. 85% maximum LTV for properties occupied as a principal residence less than 12 months or owned but not occupied the full 12 months. Refer to Rate/Term Refinance for additional details.

9. ARMs not allowed for Secondary Residences and Investment Properties

 

Pricing Policy

Non-Credit Qualifying Streamlined Refinance:

 A credit report is not required. If a credit report is obtained, pricing will be determined as follows:

 ≥620 credit score: Subject to Standard pricing tier.

 <620 credit score: Subject to Specialty pricing tier.

 If no credit report is obtained or one or more borrowers do not have a credit score: Subject to the lowest (worst case) Specialty pricing tier. Non-Traditional/Insufficient Credit:

 If the loan includes only one borrower and the borrower does not have a credit score, pricing will be based on a 580 credit score.

 If the loan includes multiple borrowers and one or more of the borrowers does not have a credit score, pricing will be based on the lower of the available credit score or 580.

 For accurate pricing, the lower of the available score or 580 must be entered in the LOS.