This is a conventional loan that allows the home buyer to put 5% down. This is NOT an FHA 203K loan. Here are examples of what you can do:
PROGRAM SUMMARY
Our renovation program allows borrowers to combine the purchase or refinance of a
home with the costs to renovate or extensively remodel the property. At closing all funds for renovation will be
escrowed in an interest earning account.
After all renovation work is complete, any remaining funds in the renovation escrow account will be used to pay down the principal balance of the mortgage. Soft costs such as architectural services, engineering and permit fees may be financed. Full builder third-party contracts only.
PROPERTY TYPES
• 1 or 2-unit, site-built homes
• Modular homes (constructed in sections off-site, but when installed at the site, takes on the
characteristics of a site-built home)
• PUD (Fannie Mae-warrantable)
• Condominium (Fannie Mae-warrantable)
• Manufactured homes are not eligible
PROPERTY VALUATION
PURCHASE
Loan amount is based on LTV derived from the lesser of:
1. The “as-is” purchase price, renovation costs, contingency costs (if financed), eligible soft costs,
interest reserve.
2. The “as-completed” value of the home.
RATE/TERM REFINANCE
LTV is based off appraised value (subject to). Loan amount not to exceed 100% of costs (total of liens on
property, plus costs of improvements and closing costs). Cash-out is not allowed.
Contact us for more information
Originally posted at Nevin William’s blog
