Bulletin W13-033 - Launch of 203(k) Product

Topic included in Bulletin W13-033:

• CMS pleased to announce the addition of the FHA Streamline 203(k) to our product offering, effective Monday, April 15, 2013
• 203(k) program allows borrowers to purchase a property or refinance an existing property requiring repairs with permanent financing
• Program enables the borrower to obtain one mortgage that provides funds for the acquisition or the existing lien payoff and the rehabilitation of the property
• Highlights of Carrington’s 203(k) program are:
  • 640 minimum credit score
  • Ratios 45%/49.99%
  • Minimum $5,000 repairs, maximum $35,000 repairs including contingency reserve
  • 15% contingency reserve
  • Property must be habitable at the time of closing
  • Major rehabilitation not permitted
  • Repairs must be completed in sixty (60) days
  • One appraisal required with “as-is” and “after improved” values
  • Two (2) disbursements – 50% at closing and remainder upon completion within sixty (60) days
• Intranet and website will be updated on Monday, April 15, 2013

Download: Bulletin - W13-033 (PDF)