203k Lending PowerPoint

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Welcome to the world of Renovation loans
What is a 203k loan? How can a 203k loan
be used? Advantages of 203k loans The
process
Paul Luykx Pluykx_at_rcn.com 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, BK0908057, BK0908058, BK0908731,
BK0903112, BK0903912, BK0906650, BK0906913
To check the license status of your CO mortgage
broker, visit www.dora.state.co.us/real-estate/ind
ex.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 BankerNYS
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
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A 203k is FHAs Rehabilitation Mortgage loan.

• With this loan, a borrower can purchase or
  refinance a home and include additional money for
  repairs or renovations.

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What can a buyer or seller do with a 203k loan?

• Purchase or refinance a property
• Update a property
• Fix a required repair
• Make optional improvements, like a room addition
  or landscaping

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Example of Repairs

• Replace Roof
• Room Addition
• Add a Garage
• New Carpet
• Upgrade to Central Heat/Air
• Repair Termite or Moisture Damage

• Energy Efficient Improvements
• Paint Interior or Exterior
• Landscaping
• Handicap Accessibility
• Remodel Kitchen/Bath

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Types of Properties

• Single Family
• 2-4 units
• Mixed use (Commercial and residential in one
  building)

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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

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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

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What is a Streamline 203k?

• 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.

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Advantages of the Streamline 203k

• Quicker and easier to obtain than a full 203k
• Repairs may cost up to 35,000
• Requires less documentation than a full 203k
• Faster closing!

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Acceptable repairs for the Streamline 203k
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

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The Process
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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

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• Dedicated 203(k) sales and processing team
• Expert personal consultation and support
• Smooth process and closing

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Thank you for your time today.
Paul Luykx Pluykx_at_rcn.com 800-405-0676