Lending refinance mortgage loans by jolinmilioncherie

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									Welcome to the world of Renovation loans

• What is a 203[k] loan?
• How can a 203[k] loan be used?
                                                                                                                                                                                                       Paul Luykx
• Advantages of 203[k] loans
                                                                                                                                                                                                       Pluykx@rcn.com
• The process
                                                                                                                                                                                                       800-405-0676

 Prospect Mortgage is located at 15301 Ventura Blvd., Suite D300, Sherman Oaks, CA 91403. Prospect Mortgage, LLC is a Delaware limited liability company licensed by the CA Dept. of Corps. under CRMLA and operates with the following
 licenses: AZ Mortgage Banker License #BK0903027, #BK0909362, #BK0908046, #BK0908050, #BK0908056, BK#0908057, #BK0908058, #BK0908731, BK#0903112, BK#0903912, BK#0906650, BK#0906913; To check the license status of
 your CO mortgage broker, visit www.dora.state.co.us/real-estate/index.htm; GA Residential Mortgage License #16984; IL Residential Mortgage Licensee #6424; MA Mortgage Lender/Broker License #MC2011; MS Licensed Mortgage Co.; MT
 Residential Mortgage Lender Licensee #120; Licensed by the NH Banking Dept.; Licensed Banker-NJ Dept. of Banking and Insurance #9932415; Operates as Metrocities Mortgage, LLC in NY (Licensed Mortgage Banker—NYS Banking
 Department); OH Mortgage Broker #MB803629; OR Mortgage Lender Licensee #ML-2006; PA Dept. of Banking license #1740; RI Licensed Lender #20021343LL, Broker #20041643LB; licensed by the VA State Corp. Commission as MC-2195.
 This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock
 agreement under MN law, or any other applicable law. 0409-13
A 203[k] is FHA’s Rehabilitation
Mortgage loan.

With this loan, a borrower can
purchase or refinance a home and
include additional money for repairs
or renovations.
What can a buyer or seller do
with a 203[k] loan?
 • Purchase or refinance a property

 • “Update” a property

 • Fix a required repair

 • Make optional improvements, like a room
   addition or landscaping
Example of Repairs:

• Replace Roof         • Energy Efficient
                         Improvements
• Room Addition
• Add a Garage         • Paint Interior or Exterior

• New Carpet           • Landscaping
• Upgrade to Central   • Handicap Accessibility
  Heat/Air
• Repair Termite or    • Remodel Kitchen/Bath
  Moisture Damage
Types of Properties

• Single Family

• 2-4 units

• Mixed use (Commercial and residential
  in one building)
Advantages:

• Perfect solution to Handyman Specials,
  or foreclosure properties

• Close before repairs begin – sellers love this

• Only one closing, with money disburse on
  a draw basis after closing
More Advantages:

• Loan amount can go as high as 110% of the
  “after-improved value”

• Up to six months to complete renovations

• Buyer can include optional renovations

• Can finance up to six months of payments
What is a Streamline 203[k]?

• The Streamline K program is for limited repairs
  requiring relatively little expertise to manage.

• There is no consultant managing the project.
  Instead, this program is designed for a
  “streamlined” project where the home can be
  occupied immediately after closing, and the
  contractor will receive a single payment at
  completion.
Advantages of the Streamline 203[k]

• Quicker and easier to obtain than a full 203[k]

• Repairs may cost up to $35,000

• Requires less documentation than a full 203[k]

• Faster closing!
Acceptable repairs for the Streamline
203[k] include:
• Repair/replacement of roof, gutters and downspouts
• Repair/replacement/upgrade of existing HVAC systems
• Repair/replacement/upgrade of plumbing and electrical systems
• Repair/replacement of existing floors
• Minor remodeling, such as in the kitchen, which does not involve
  structural repairs
• Exterior and interior painting
• Repair/replacement/upgrade of appliances (some limitations apply)
• Improvements for accessibility for persons with disabilities
The Process
Example of Loan Amount
Calculation:
Purchase Price               $200,000

Total Rehabilitation Cost:   $ 20,000

Total Acquisition Cost:      $220,000

Maximum FHA Loan Amount:     $212,300

Down payment:                $   7,700
• Dedicated 203(k) sales and processing
  team

• Expert personal consultation and support

• Smooth process and closing
Thank you for your time today.


                         Paul Luykx
                         Pluykx@rcn.com
                         800-405-0676

								
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