Niche Products Flashcards
What makes renovation loans unique?
Home purchase includes reno costs; refinance plus reno costs; Max LTV is based on projected home value
Why would someone use a reno loan?
To purchase a foreclosure, home that needs updates and changes, refinance and renovate a home
What kind of repairs are allowed in the 203K FHA standard Limited repair program?
Non-structural and cannot exceed $35000 in repairs
What kind of repairs are allowed in the 203k FHA Standard program?
Both non-structural and structural repairs, no limit on costs
What are both 203k FHA standard programs max LTVs based on?
Estimated as-is value or purchase price before reno + cost of renos and closing costs OR 110% of expected after improved value
Are there restrictions on types of repairs or properties for FNMA Homestyle Reno loan?
No restrictions or minimum dollar amounts; can be used for primary, secondary, investment props
Is DIY allowed on FHA reno loans?
No, must be done by a contractor
Is DIY allowed on FNMA reno loans?
Yes, cannot be more than 10%
What document is required for FHA reno loans?
HUD Maximum Mortgage Worksheet
When do renovations need to be completed for FNMA reno loans?
Within 12 months
What is the Home Affordable Refinance Program (HARP)?
For homeowners who are current on mortgage payments but were unable to refinance due to housing collapse
Which agency loans are eligible for High LTV refinance?
FNMA and FHLMC backed loans
Are FNMA High LTV Refinance loans required to have MI?
Not if they didn’t before
What are the Alternate Qualification Path and Special FMERR loans?
Applies if P&I increases by more than 20%; borrower is removed; higher priced mortgage under Reg Z
What does the FHLMC Enhanced Relief Refinance allow for?
Expanded guidelines, no max LTV but minimum LTV, closing costs up to $5000
