203-K (Streamline) Loan
Transactions: The 203-K Streamline program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. Repair of structural damage is not allowed. All work must be completed within 60 days of closing. Refer to Residential Bancorp’s FHA Program Guidelines for additional requirements. Two disbursement check’s allowed. The first check will be 25% of the total bid amount and the final check 75% of the total bid. Minimum FICO score is 620 (No exceptions).
Appraisal Transferred appraisal allowed, subject to obtaining the AMC letter verifying compliance with MDIA and AIR and a copy of the paid invoice.
Condominiums FHA Approved condominiums.
Flips > 20% Increase < 90 days Current requirements for the 90-day flip rule will expire 12/31/14 (executed sales contract date). Refer to RB's FHA program guidelines for additional requirements. • FHA defines the seller’s date of acquisition as the date of settlement on the seller’s purchase of that property. FHA defines the resale date as the date of execution of the sales contract by all parties intending to finance the property with an FHA-insured mortgage (The date the contract was signed and dated by seller(s) and borrower(s). Manufactured Homes Double wide only, Land owned fee simple, minimum square footage 500, construction to permanent loans are not allowed. Permanent foundation must be completed by Licensed engineer or registered architect. Refer to Residential Bancorp’s FHA Program Guidelines for additional requirements. Termite Inspections Termite Inspection is required if included in the sales contract and if required by appraiser or at underwriter’s discretion. Subordinate Financing The HLTV must be calculated using amount designated on the recorded Mtg/Trust Deed and not based on any modified amount designated in writing.