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

April 15, 2013Bulletins

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)

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