| The standard loan to value requirement for most purchase transactions is that it must be based on the lesser of the sale price or the appraised value. Renovation lending allows a prospective borrower to roll in the cost of improvements into the loan to value calculation.
Renovation lending opens doors to many new markets for lenders.
With AllRegs Academy’s Renovation Lending Practical Guide we show you the way.
AllRegs Academy’s Renovation Lending Practical Guide consolidates the Fannie Mae Home Style®, FHA 203(k) and Freddie Mac program requirements into one publication, using easy reference topics and following the mortgage loan flow. The requirements for each agency are covered under every topic to help lenders develop consistent practices for their renovation programs as a whole. The Renovation Lending Practical Guide provides detailed, easy to reference and cohesive information that is written for use by management and staff for daily procedures and best practices. The authors developed this course using their collective 75 years of mortgage lending experience coupled with the publications and resources provided by the agencies.
What's Inside
The following source documents and resources have been included in the Renovation Lending Practical Guide:
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FHA 203(k) 4240.4
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Fannie Mae Selling Guide
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Fannie Mae Guide to Desktop Underwriter
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Freddie Mac Seller Servicer Guide I
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efanniemae.com
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freddiemac.com
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hud.gov/groups/lenders.cfm
Industry benchmarks and tips are identified by:
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Best practices |
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Alternative process and/or portfolio lending option |
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Case binder document or insuring issue (203k) |
Items included in this Guide:
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Overview of advantages and challenges
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Interest rate risk management
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One time versus two time closing considerations
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Purchase transaction requirements
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Refinance transaction requirements
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Contractor acceptance procedures and checklists
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Self build/borrower as contractor requirements
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Origination best practices
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Processing and underwriting requirements unique to renovation lending
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Closing procedures and documentation
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Post closing a renovation loan
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Draw management
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Quality control considerations
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Regulatory compliance specific to renovation lending
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Forms required by the agency and forms designed as samples to use in your operation
Target Audience
To simplify the guide even further, it is designed with the assumption that users have a basic knowledge of mortgage banking and focus only on requirements specific to renovation lending.
Copyright Information
© 2008 Mortgage U. This version of the Renovation Lending Practical Guide is based on information available to MortgageU as of October 31, 2008. Federal law prohibits reproduction of any portion of the materials used in this online practical guide unless written permission is received from Mortgage U in advance.
For discounts related to coupon or discount codes, quantity discounts or catalog pricing, please follow the instructions on the discount communication or call AllRegs Customer Service at (800) 848-4904. |
