203K UNDERWRITING CONDITIONS Max Mortgage Worksheet The 203k MMW C3 will have change in it. As the borrower’s min investment must come for this number. HOWEVER the base loan amount will not have change in it. AUS When you run your AUS you must use the C3 for the sales price (do not itemize sales price and alterations on the details of transaction), and yes with the change. This will give you an Approve/Eligible. 203K (full) APPROVAL CONDITIONS: 1. FHA CONNECTION TO BE UPDATED WITH HUD CONSULANT ID# 2. APPRAISER & CONSULTANT TO VERIFY IF ALL UTLITIES & MECHANICALS WERE ON AND IN PROPER WORKING ORDER AT TIME OF INSPECTION; NOTE: SEPTIC & WELL VACANT 30+ DAYS WILL REQUIRE SATISFACTORY SEPTIC INSPECTION (unless included in 203k repairs); REPAIRS TO BE COMPLETED PRIOR TO ANY OTHER REPAIR/CONTRACT WORK, AND MUST MEET FHA REQUIREMENTS. 3. FULLY EXECUTED LOAN REHAB AGREEMENT SIGNED BY BORROWER AND LOAN OFFICER --BELOW SHOULD ALL BE IN RR FINAL SIGNED PACKAGED 4. RR PRELIMINARY APPROVED WORK WRITE-UP FROM HUD APPROVED CONSULTANT WITH NARRATIVE OF $_________ INCLUDING IDENTITY OF INTEREST STATEMENT & INVOICE; CONSULTANT’S REPORT MUST INCLUDE ALL PAGES, SIGNED AND DATED WITH HUD REVIEWER WITH COST CONSULTANT ID# AND FHA CASE# MUST INCLUDE ALLOWABLE FEES (PERMITS, INSPECTIONS, TITLE UPDATES,ETC) 5. FULLY EXECUTED DRAW REQUEST FORM SIGNED BY CONSULTANT (MUST MATCH WORK WRITE UP) 6. FULLY EXECUTED 203K HUD CONSULTANT AGREEMENT SIGNED BY CONSULTANT AND BORROWER 7. FULLY EXECUTED HOMEOWNER CONTRACTOR AGREEMENT EVIDENCING COST OF REPAIR AND COMPLETION DATE; TO BE SIGNED AND DATED BY BORROWER AND CONTRACTOR. 8. COPY OF CONTRACTORS LICENSE AND LIABILITY INSURANCE. MUST BE THROUGH THE TIME REPAIRS WILL BE COMPLETED BY OR HAVE PROOF OF RENEWAL 9. FULLY EXECUTED COPY OF CONTRACTORS W9 10. FULLY EXECUTED BORROWERS ACKNOWLEDGMENT DISCLOSURE SIGNED BY BORROWERS AND LOAN OFFICER 11. FULLY EXECUTED BORROWERS IDENTITY OF INTEREST SIGNED BY BORROWER 12. COPY OF RR CONTRACTOR ACCEPTANCE AND EXCEPTION FORM (MAY NEED STATEMENT OF EXEMPTION FROM WORKERS COMPENSATION REQUIREMENT PER FORM) 13. FULLY EXCUTED PERMIT AND/OR CERT REQUIREMENT FORM SIGNED BY CONSULTANT, CONTRACTOR AND BORROWER 14. DETAILED CONTRACTOR BID ON LETTERHEAD WITH BORROWER AND SUBJECT PROPERTY LISTED. MUST BE SIGNED BY CONTRACTOR AND BORROWER 15. COPY OF PERMIT, ARCHITECTURAL/ENGINEERING FEE INVOICES FROM CONTRACTOR 203K (full) CLOSING CONDITIONS: 1. 203k Sales Price on Hud 1 to read $______ (sales price no repairs included) + repairs/rehab amount $________ (total repair costs) = Total Sales Price $_________ (sales price noted on all underwriting docs). 2. BORROWER TO SIGN MORTGAGE PAYMENT RESERVE FORM IF APPLICABLE (MUST BE EVIDENT ON FINAL MMW) 203k FEE “Lender Inspection Fee”, in the amount of $175.00 Must be charged to borrower, payable to “Other”, APR Yes. (never heard of this) 3. Rehab loan agreement in the amount of $___________ loan amount and $______ repairs to be fully executed at closing. 4. Rehab rider to deed of trust to be fully executed and recorded with Deed of trust. 5. #of inspections 203K POST CLOSING INSPECTION FEES IN THE AMOUNT OF $___ = $_____ PAID TO OTHER 6. # of title updates 203K POST CLOSING TITLE UPDATE FEES IN THE AMOUNT OF $___ = $_____ PAID TO OTHER 7. 203K PERMIT FEE OF $______ TO BE PAID TO contractor (must have an invoice in invoices bucket) 8. ARCHITECTURAL/ENGINEER FEE OF $_____ TO BE PAID TO name on invoice (must have an invoice in invoices bucket) ** only on FULLs 9. $____ CONSULTANT FEE PAID TO Consultant name (must have an invoice in invoices bucket) ** only on FULLs 10. 203K REMAINING IN ESCROW BALANCE OF $_______ TO REFLECT IN FEE SCREEN AS "REMAINING IN ESCROW" AND TO BE NET FUNDED FROM THE WIRE 203k Remaining in Escrow (including $____ for mortgage payments) paid to PRMI 12. This loan has been approved with #___________ month of mortgage payments totaling $______ to be included in the escrow account. (Paid to PRMI) 11. 13. BORROWER TO SIGN 203K MAX MORTGAGE WORKSHEET AT CLOSING 14. TITLE TO PROVIDE A COPY OF ALL CHECKS ASSOCIATED WITH THIS TRANSACTION 203KS (streamline) APPROVAL CONDITIONS: 1. APPRAISER & CONSULTANT TO VERIFY IF ALL UTLITIES & MECHANICALS WERE ON AND IN PROPER WORKING ORDER AT TIME OF INSPECTION; NOTE: SEPTIC & WELL VACANT 30+ DAYS WILL REQUIRE SATISFACTORY SEPTIC INSPECTION (unless included in 203k repairs); REPAIRS TO BE COMPLETED PRIOR TO ANY OTHER REPAIR/CONTRACT WORK, AND MUST MEET FHA REQUIREMENTS. 2. FULLY EXECUTED LOAN REHAB AGREEMENT SIGNED BY BORROWER AND LOAN OFFICER --BELOW SHOULD ALL BE IN RR FINAL SIGNED PACKAGED 3. COMPLETE DETAILED CONTRACTOR’S BID FOR ALL WORK & STREAMLINE COST WORKSHEET WITH SCOPE OF REPAIRS AND FINAL COSTA(S) MEETING STREAMLINE PROGRAM GUIDELINES ON LETTERHEAD WITH BORROWER AND SUBJECT PROPERTY LISTED. MUST BE SIGNED BY CONTRACTOR AND BORROWER. TOTAL REPAIRS CAN NOT INCLUDE PERMIT COST 4. FULLY EXECUTED HOMEOWNER CONTRACTOR AGREEMENT EVIDENCING COST OF REPAIR AND COMPLETION DATE; TO BE SIGNED AND DATED BY BORROWER AND CONTRACTOR. 5. COPY OF CONTRACTORS LICENSE AND LIABILITY INSURANCE. MUST BE THROUGH THE TIME REPAIRS WILL BE COMPLETED BY OR HAVE PROOF OF RENEWAL 6. FULLY EXECUTED COPY OF CONTRACTORS W9 7. FULLY EXECUTED BORROWERS ACKNOWLEDGMENT DISCLOSURE SIGNED BY BORROWERS AND LOAN OFFICER 8. FULLY EXECUTED BORROWERS IDENTITY OF INTEREST SIGNED BY BORROWER 9. COPY OF RR CONTRACTOR ACCEPTANCE AND EXCEPTION FORM (MAY NEED STATEMENT OF EXEMPTION FROM WORKERS COMPENSATION REQUIREMENT PER FORM) 10. COPY OF PERMIT INVOICE FROM CONTRACTOR 203KS (streamline) Closing CONDITIONS: 1. Disbursement in the amount of $ made payable to_(Always both parties borrower and contractor)_____ to reflect on HUD. (Total disbursements not to exceed 50% of line B1 on 203K max mortgage worksheet) 2. Remaining escrow balance of $ must reflect on the HUD-1 as “amount remaining in escrow” or HUD-s will be REJECTED and not approved. 3. HUD-1 must be reviewed and approved for the 203k Streamline portion prior to release of documents to title by a member of the 203k department 4. Remaining escrow balance of $ to reflect in fee screen as “Remaining in escrow” and to be net funded from wire. (B1 “total cost of repairs minus disbursement at closing to contractor (not always exact 50%) plus B2 “contingency fee” on 203k maximum mortgage worksheet) 5. “203k Sales Price to read $______ (sales price no repairs included) + repairs/rehab amount $________ (total repair costs) = Total Sales Price $_________ (sales price noted on all underwriting docs). 6. SALES PRICE TO BE REFLECTED ON HUD 1 $_____ (actual sales price not acquisition price) 7. Rehab rider to deed of trust to be fully executed and recorded with Deed of trust. 8. Rehab loan agreement in the amount of $___________ to be fully executed at closing. 9. #of inspections 203K POST CLOSING INSPECTION FEES IN THE AMOUNT OF $___ = $_____ PAID TO OTHER 10. # of title updates 203K POST CLOSING TITLE UPDATE FEES IN THE AMOUNT OF $___ = $_____ PAID TO OTHER 11. 203K PERMIT FEE OF $______ TO BE PAID TO contractor (must have an invoice in invoices bucket) 12. BORROWER TO SIGN 203K MAX MORTGAGE WORKSHEET AT CLOSING 13. SALES PRICE TO BE REFLECTED ON HUD 1 $_____ (actual sales price not acquisition price) 14. TITLE TO PROVIDE A COPY OF ALL CHECKS ASSOCIATED WITH THIS TRANSACTION