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