FHA Streamline Renovation Loan - Lending Nationwide.

[Jerry Padilla]

Product Overview

LTV Requirements: Maximum of 110%

1-2 units allowed (3-4 units by exception only)

The Limited 203(k) may only be used for minor remodeling and non-structural repairs.

The Limited 203(k) does not require the use of a 203(k) Consultant, but a Consultant may be used.

There is no minimum rehabilitation cost.

Maximum number of contractors: 3

Repair Limits

• Renovation Total can be up to $35,000 in cosmetic repairs.
• This amount includes: 10% contingency reserve and all fees and costs listed in the fee section.
• Exceptions are not allowed to exceed the repair amount.
• Borrower is not allowed to fund overage.

Allowable Repairs

oRepairs and final inspection completed lesser of 180 days or as approved by the Renovation department

oMaximum repairs $35,000 (inclusive of all financed renovation fees). NO Exceptions.

oRoof: repair or replacement (covering, underlayment)

oGutters/downspouts: install/repair/replace

oInsulation: ceilings/walls/asbestos removal

oSiding/windows/doors

oPaint: interior/exterior/lead paint abatement

oKitchen: all appliances/cabinets/ total

oElectrical: repair/replace/recondition all

oPlumbing: repair/replace/recondition all

oRepair/Replace HVAC or other systems

oRepairing or removing an in-ground swimming pool

oInstalling or repairing fences, walkways and driveways

oFlooring/subflooring/tile/carpet/wood

oTermite treatment/damage repair

oRepairing or replacement of well and septic- *See appraisal section of the guidelines for specific requirements

oWeatherization items/repairs/ improvements

Non-Allowable Repairs

oStructural or requiring engineers report or requiring blueprints

oRepairs performed by the borrower

oNo Detached Garages

oNo Swimming Pool Installations. Pool Repairs are allowed.

oImprovements that do not conform to the surrounding neighborhood

oRepair cost that exceeds $35,000. NO Exceptions.

oAny new construction including room additions.

oLandscaping or similar site amenity improvements.

oAny repair or improvement requiring a work schedule longer than six months.

oRehabilitation activities that require more than two payments per specialized contractor.

oMajor rehabilitation or major remodeling.

oRequired repairs arising from the appraisal that Necessitate a “consultant” to develop a Specification of Repairs/Work Write-Up.”

oRequire plans or architectural exhibits.

oResults in work not starting within 30 days after loan closing.

oBorrower is unable to occupy at closing or within 30 days.

oTelevision antenna and satellite dishes.

oAdditions or alterations for commercial use.

oSFR conversion to a 2 unit

Contingency Reserve

o10% of the cost of rehabilitation

oProperties where the utilities are turned off will require a 20% contingency.

Permits

oIf permits are required to complete the improvements, you must have permits prior to any subsequent draws after settlement. No Exceptions

Borrower Acknowledgment

oParties listed below are not eligible to perform the work:

oBorrower

oFamily Member

oBorrowers Employer

oSeller

oRealtor

oAny Interested party to the transaction

A family member is not allowed to originate or be involved in the loan process

oFamily member as defined below:

oChild (son, stepson, daughter, stepdaughter)

oSpouse

oParent (includes step-parent or foster parent)

oGrandparent (includes step-grandparent or foster grandparent)

oLegally adopted son or daughter, including a child who is placed with the borrower by an authorized agency for legal adoption

oFoster child

oBrother/stepbrother

oSister/stepsister

oUncle

oAunt

oIn-laws

Fees

oSingle Fee: $550

Conforming Loan Amounts

oMaximum loan amount as determined by FHA (Conforming Loan Limits depending on location and number of units - below)

oEach county has its own individual area limit https://entp.hud.gov/idapp/html/hicostlook.cfm

High Balance Loan Amounts

oMaximum loan amount as determined by FHA (High Balance Loan Limits depending on location and number of units - below)

oEach county has its own individual area limit (refer to the following HUD website) https://entp.hud.gov/idapp/html/hicostlook.cfm

Upfront MIP

o1.75% of the Base Loan Amount

Monthly MIP

Mortgage Term of More Than 15 Years Base Loan Amount	LTV	MIP	Duration
Less than or equal to $625,500
≤ 90.00%	.80	11 Years
> 90.00% but ≤ 95.00%	.80	Mortgage Term
> 95.00%	.85	Mortgage Term
Greater than $625,500
≤ 90.00%	1.00	11 Years
> 90.00% but ≤ 95.00%	1.00	Mortgage Term
> 95.00%	1.05	Mortgage Term

Mortgage Term of Less than or Equal to 15 Years	LTV	MIP	Duration
Less than or equal to $625,500	≤ 90.00%	.45	11 Years