FHA 203(k) Data Entry in FAST

Transcription

1 FHA 203(k) Data Entry in FAST Key Points to Determine Prior to Starting the Data Entry 1. Sale price of the subject property (from the purchase contract) 2. Total amount of the rehabilitation project including all labor, materials, and permits (from the contractor s scope of work) 3. FHA county loan limit This job aid will assume the following 1. Transaction will be structured under the limited 203(k) program 2. Subject property is not a HUD REO asset 3. There is one contractor that will complete the entire project 4. Subject property is a single-family home located in Tarrant County, Texas with a maximum mortgage amount of 310, Buyer and seller have agreed upon a sale price of 279,900 with no sales concessions 6. The scope of work from the contractor indicates the total repair cost of 28,500 Also attached to this job aid 1. Completed Completed 203(k) worksheet FHA 203(k) FAST Job Aid

2 Step One Complete the consumer s data entry in FAST as you would with any other transaction. Validate acceptability of the ratios and credit history. Step Two Add the FHA 203(k) worksheet to the e-doc Manager in FAST. 1. Select the forms tab 2. Expand the General section 3. Expand the FHA subsection 4. Check the box to select the 203(k) Maximum Mortgage Worksheet 5. Click Add To Folder Step Three Open the FHA 203(k) worksheet in FAST for editing 1. Click the edit pencil from the e-doc Manager FHA 203(k) FAST Job Aid

3 Step Four Complete the worksheet (top section) 1. Borrower name and property address should pull through 2. Select the applicable radio buttons for purchaser type, HUD-REO Property, and loan purpose Complete the worksheet (section A) 1. Box 1 - Sale price (should pull from Loan Info screen) 2. Box 2 - Enter the As-Is value to match the sale price (unless a different as-is value has already been established from an appraisal.) This is likely unfrequent, but possible. 3. Box 3 - Enter the sum of the sale price and repair cost in the After-Improved Value (for now, this will be updated upon completion of the worksheet) 4. Box 5 - Enter zero 5. Box 6 - Enter zero FHA 203(k) FAST Job Aid

4 Complete the worksheet (section B) 1. Line 1 - Enter repair cost from contractor s scope of work 2. Line 2 - Enter the applicable contingency reserve percentage (10% or 15%) 3. Line 3 - Enter the cost of inspection fees and lien searches 4. Line 6 - Enter zero 5. Line 8 - Enter zero 6. Line 9 - Enter zero 7. Line 11 - Supplemental Origination Fee (SORF). Make note of this number, you will need to enter this elsewhere in FAST. 8. Line 14 - Total Rehabilitation Cost (LIP amount). Make note of this number, you will need to enter this elsewhere in FAST. Complete the worksheet (section C) 1. This is where the base loan amount calculation happens. 2. Line 3 - Acquisition cost. Make note of this number, you will need to enter this elsewhere in FAST. a. Manually divide the acquisition cost by 110%, and round that up to the nearest hundred dollars. This will give you the minimum after-improved value. Enter that number in Box 3 in Section A b. Note - using the sample transaction in this job aid, this number will be 283,658.86, which will round to 283, Line 4 - Enter a sufficient negative number in the adjustments section to adjust down the BLA to the nearest whole dollar. a. Note - this is typically the amount of the odd-change originally shown in the field plus a few cents. b. Make note of this number, you will need to enter this elsewhere in FAST. Complete the worksheet (sections D & E) 1. Enter zeros in all fields FHA 203(k) FAST Job Aid

5 Complete the worksheet (section F) 1. Enter the applicable UFMIP factor and amount 2. Enter the total escrowed funds from Line B14 above 3. Line 1 - Enter the total loan amount Save and return to the loan snapshot Step Five Open the Loan Info screen for editing Step Six FHA 203(k) FAST Job Aid

6 Step Seven 1. Enter the acquisition cost from the worksheet as the appraised value on the Loan Info screen (make certain you include the cents) 2. Enter the base loan amount from the worksheet into the base loan amount on the Loan Info screen (make certain you do not include the cents) 3. Note - the down payment percentage and amount will appear to be off. This is normal Open the 1003 screen for editing Step Eight FHA 203(k) FAST Job Aid

7 On the Details tab, 1. Line B - enter the LIP amount 2. Line L - enter the SORF as an Other Credit Step Nine On the Government Info tab, select 203(k) Purchase, Rehab from the Section of the Act dropdown menu FHA 203(k) FAST Job Aid

8 If you ve completed all of the steps above, your LTV ratios should be in line. Open the Fees Worksheet for editing Step Ten FHA 203(k) FAST Job Aid

9 Step Eleven Select FHA 203(k) Supplemental Origination Fee from the drop down menu, and enter the corresponding dollar amount from the worksheet FHA 203(k) FAST Job Aid

10 Uniform Residential Loan Application This application is designed to be completed by the applicant(s) with the Lender's assistance. Applicants should complete this form as "Borrower" or "Co-Borrower," as applicable. Co-Borrower information must also be provided (and the appropriate box checked) when the income or assets of a person other than the "Borrower" (including the Borrower's spouse) will be used as a basis for loan qualification or the income or assets of the Borrower's spouse or other person who has community property rights pursuant to state law will not be used as a basis for loan qualification, but his or her liabilities must be considered because the spouse or other person has community property rights pursuant to applicable law and Borrower resides in a community property state, the security property is located in a community property state, or the Borrower is relying on other property located in a community property state as a basis for repayment of the loan. If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit (sign below): Borrower Co-Borrower I. TYPE OF MORTGAGE AND TERMS OF LOAN Mortgage VA Conventional Other (explain): Agency Case Number Lender Case Number Applied for: FHA USDA/Rural Housing Service Amount Interest Rate No. of Months Amortization Type: Fixed Rate Other (explain): 360 Amort.Term 306, % 360 Loan Term GPM ARM (type): II. PROPERTY INFORMATION AND PURPOSE OF LOAN Subject Property Address (street, city, state & ZIP) No. of Units TBD, Arlington, TX Legal Description of Subject Property (attach description if necessary) Year Built Purpose of Loan Purchase Construction Other (explain): Refinance Construction-Permanent Complete this line if construction or construction-permanent loan Year Lot Acquired Original Cost Amount Existing Liens (a) Present Value of Lot Property will be: (b) Cost of Improvements Primary Secondary Investment Residence Residence Total (a + b) Complete this line if this is a refinance loan Year Acquired Original Cost Amount Existing Liens Purpose of Refinance Describe Improvements Made To be Made Title will be held in what Name(s) Manner in which Title will be held Estate will be held in: Thomas Twoohthreek Fee Simple Source of Down Payment, Settlement Charges and/or Subordinate Financing (explain) Cost: Leasehold (show expiration date) BORROWER III. BORROWER INFORMATION CO-BORROWER Borrower's Name (include Jr. or Sr. if applicable) Thomas T Twoohthreek Social Security Number Married Separated Home Phone Unmarried (include single, divorced, widowed) DOB (MM/DD/YYYY) Yrs. School (330) /01/ Dependents (not listed by Co-Borrower) no. 0 ages Co-Borrower's Name (include Jr. or Sr. if applicable) Social Security Number Married Separated Home Phone Unmarried (include single, divorced, widowed) DOB (MM/DD/YYYY) Yrs. School Dependents (not listed by Borrower) no. ages Present Address (street, city, state, ZIP) Own Rent No. Yrs. 18 Present Address (street, city, state, ZIP) Own Rent No. Yrs. 129 Commonwealth Ave NE Massillon, OH Mailing Address, if different from Present Address Mailing Address, if different from Present Address If residing at present address for less than two years, complete the following: Former Address (street, city, state, ZIP) Own Rent No. Yrs. Former Address (street, city, state, ZIP) Own Rent No. Yrs. Freddie Mac Form 65 6/09 Fannie Mae Form /09 Page 1 of 4

11 BORROWER IV. EMPLOYMENT INFORMATION CO-BORROWER Name & Address of Employer Self-Employed Yrs. on this job Name & Address of Employer Self-Employed Yrs. on this job iwigituberwigitmegaxt, Inc 18 y 7343 Pearl Rd Cleveland, OH Yrs. employed in this line of work/profession 18 Yrs. employed in this line of work/profession Position/Title/Type of Business Business Phone TGWDTT (440) Position/Title/Type of Business Business Phone If employed in current position for less than two years or if currently employed in more than one position, complete the following: Name & Address of Employer Self-Employed Dates (from-to) Name & Address of Employer Self Employed Dates (from-to) Monthly income Monthly Income Position/Title/Type of Business Business Phone Position/Title/Type of Business Business Phone Name & Address of Employer Self-Employed Dates (from-to) Name & Address of Employer Self-Employed Dates (from-to) Monthly Income Monthly Income Position/Title/Type of Business Business Phone Position/Title/Type of Business Business Phone V. MONTHLY INCOME AND COMBINED HOUSING EXPENSE INFORMATION Gross Monthly Combined Monthly Borrower Co-Borrower Total Present Income Housing Expense Base Empl. Income* 10, , Rent 1, Overtime First Mortgage (P& I) Bonuses Other Financing (P& I) Commissions Dividends/Interest Net Rental Income Other (before completing see the notice in "describe other income," below) Hazard Insurance Real Estate Taxes Mortgage Insurance Homeowner Assn. Dues Other: Proposed Total 10, , Total 1, , * Self-Employed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements. 1, Describe Other Income B/C Notice: Alimony, child support or separate maintenance income need not be revealed if the Borrower (B) or Co-Borrower (C) does not choose to have it considered for repaying this loan. Monthly Amount Freddie Mac Form 65 6/09 Fannie Mae Form /09 Page 2 of 4

12 VI. ASSETS AND LIABILITIES This Statement and any applicable supporting schedules may be completed jointly by both married and unmarried Co-Borrowers if their assets and liabilities are sufficiently joined so that the Statement can be meaningfully and fairly presented on a combined basis; otherwise, separate Statements and Schedules are required. If the Co-Borrower section was completed about a non-applicant spouse or other person, this Statement and supporting schedules must be completed about that spouse or other person also. Completed: Jointly Not Jointly ASSETS Description Cash deposit toward purchase held by: Cash or Market Value LIABILITIES AND PLEDGED ASSETS. List the creditor's name, address and account number for all outstanding debts, including automobile loans, revolving charge accounts, real estate loans, alimony, child support, stock pledges, etc. Use continuation sheet, if necessary. Indicate by (*) those liabilities which will be satisfied upon sale of real estate owned or upon refinance of the subject property. Monthly Payment & LIABILITIES Months Left to Pay Unpaid Balance LIST CHECKING AND SAVINGS ACCOUNTS BELOW Name and Address of Bank, S&L, or Credit Union Name and Address of Company Payment/Months Huntington National Bank / (B) Lincoln AFS / (B) - Installment Loan / 58 58, PO Box 1558 EA1W37 Columbus, OH Account No , Account No. Name and Address of Bank, S&L, or Credit Union Name and Address of Company Payment/Months Visa / (B) - Revolving Charge Account / 2, Account No. Account No. Name and Address of Bank, S&L, or Credit Union Name and Address of Company Payment/Months Home Depot Credit Services / (B) / 1, Account No. Account No. Name and Address of Bank, S&L, or Credit Union Name and Address of Company Payment/Months Account No. Account No. Stocks & Bonds (Company name/number and Name and Address of Company Payment/Months description) Life insurance net cash value Account No. Face Amount: Name and Address of Company Payment/Months Subtotal Liquid Assets 84, Real estate owned (enter market value from schedule of real estate owned) 0.00 Vested interest in retirement fund Net worth of business(es) owned (attach financial statement) Account No. Automobiles owned (make and year) Name and Address of Company Payment/Months Account No. Other Assets (itemize) Alimony/Child Support/Separate Maintenance Payments Owed to: Job Related Expense (child care, union dues, etc.) Total Monthly Payments Total Assets a. 84, Net Worth (a minus b) 23, Total Liabilities b. 61, Property Address (enter S if sold, PS if pending sale or R if rental being held for income) Schedule of Real Estate Owned (If additional properties are owned, use continuation sheet.) Type of Property Present Market Value Amount of Mortgages & Liens Gross Rental Income Mortgage Payments Insurance, Maintenance, Taxes & Misc. Net Rental Income TOTALS List any additional names under which credit has previously been received and indicate appropriate creditor name(s) and account number(s): Alternate Name Creditor Name Account No. Freddie Mac Form 65 6/09 Fannie Mae Form /09 Page 3 of 4

13 VII. DETAILS OF TRANSACTION VIII. DECLARATIONS a. Purchase price 279, If you answer yes to any questions a through i, please use a continuation sheet for explanation. b. Alterations, improvements, repairs 32, a. Are there any outstanding judgments against you? c. Land (if acquired separately) b. Have you been declared bankrupt within the past 7 years? d. Refinance (incl. debts to be paid off) c. Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years? e. Estimated prepaid items d. Are you a party to a lawsuit? f. Estimated closing costs g. PMI, MIP, Funding Fee h. Discount (if Borrower will pay) 4, , e. Have you directly or indirectly been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment? (This would include such loans as home mortgage loans, SBA loans, home improvement loans, educational loans, manufactured (mobile) home loans, any mortgage, financial obligation, bond, or loan guarantee. If "Yes," provide details, including date, name and address of Lender, FHA or VA case number, if any, and reasons for the action.) i. Total Costs (add items a through h) 322, f. Are you presently delinquent or in default on any Federal debt or any other loan, mortgage, financial obligation, bond, or loan guarantee? If "Yes," give j. Subordinate financing details as described in the preceding question. k. Borrower's closing costs paid by Seller g. Are you obligated to pay alimony, child support, or separate maintenance? l. Other Credits (explain) Other h. Is any part of the down payment borrowed? i. Are you a co-maker or endorser on a note? j. Are you a U.S. citizen? Borrower Yes No Co-Borrower Yes No m. Loan Amt (exclude PMI, MIP, Funding Fee financed) k. Are you a permanent resident alien? l. Do you intend to occupy the property as your primary residence? If "Yes," complete question m below. n. PMI, MIP, Funding Fee financed 5, m. Have you had an ownership interest in a property in the last three years? o. Loan Amount (add m and n) p. Cash from/to Borrower (subtract j, k, l, & o from i) 301, , , (1) What type of property did you own principal residence (PR), second home (SH), or investment property (IP)? (2) How did you hold title to the home solely by yourself (S), jointly with your spouse (SP), or jointly with another person (O)? IX. ACKNOWLEDGMENT AND AGREEMENT Each of the undersigned specifically represents to Lender and to Lender's actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq.; (2) the loan requested pursuant to this application (the "Loan") will be secured by a mortgage or deed of trust on the property described in this application; (3) the property will not be used for any illegal or prohibited purpose or use; (4) all statements made in this application are made for the purpose of obtaining a residential mortgage loan; (5) the property will be occupied as indicated in this application; (6) the Lender, its servicers, successors or assigns may retain the original and/or an electronic record of this application, whether or not the Loan is approved; (7) the Lender and its agents, brokers, insurers, servicers, successors, and assigns may continuously rely on the information contained in the application, and I am obligated to amend and/or supplement the information provided in this application if any of the material facts that I have represented herein should change prior to closing of the Loan; (8) in the event that my payments on the Loan become delinquent, the Lender, its servicers, successors or assigns may, in addition to any other rights and remedies that it may have relating to such delinquency, report my name and account information to one or more consumer reporting agencies; (9) ownership of the Loan and/or administration of the Loan account may be transferred with such notice as may be required by law; (10) neither Lender nor its agents, brokers, insurers, servicers, successors or assigns has made any representation or warranty, express or implied, to me regarding the property or the condition or value of the property; and (11) my transmission of this application as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or my facsimile transmission of this application containing a facsimile of my signature, shall be as effective, enforceable and valid as if a paper version of this application were delivered containing my original written signature. Acknowledgement. Each of the undersigned hereby acknowledges that any owner of the Loan, its servicers, successors and assigns, may verify or reverify any information contained in this application or obtain any information or data relating to the Loan, for any legitimate business purpose through any source, including a source named in this application or a consumer reporting agency. Borrower's Signature Date Co-Borrower's Signature Date X X X. INFORMATION FOR GOVERNMENT MONITORING PURPOSES The following information is requested by the Federal Government for certain types of loans related to a dwelling in order to monitor the lender's compliance with equal credit opportunity, fair housing and home mortgage disclosure laws. You are not required to furnish this information, but are encouraged to do so. The law provides that a lender may not discriminate either on the basis of this information, or on whether you choose to furnish it. If you furnish the information, please provide both ethnicity and race. For race, you may check more than one designation. If you do not furnish ethnicity, race, or sex, under Federal regulations, this lender is required to note the information on the basis of visual observation and surname if you have made this application in person. If you do not wish to furnish the information, please check the box below. (Lender must review the above material to assure that the disclosures satisfy all requirements to which the Lender is subject under applicable state law for the particular type of loan applied for.) BORROWER I do not wish to furnish this information. CO-BORROWER I do not wish to furnish this information. Ethnicity: Hispanic or Latino Not Hispanic or Latino Ethnicity: Hispanic or Latino Not Hispanic or Latino Race: American Indian or Asian Black or Race: American Indian or Asian Black or Alaska Native African American Alaska Native African American Native Hawaiian or White Native Hawaiian or White Other Pacific Islander Other Pacific Islander Sex: Female Male Sex: Female Male To be completed by Loan Originator This information was provided by: In a face-to face interview In a telephone interview By the applicant and submitted by fax or mail By the applicant and submitted via or the Internet Loan Originator s Signature: X Date Loan Originator s Name (print or type) Loan Originator Identifier Loan Originator s Phone Number (including area code) Toby Hoy (330) Loan Origination Company s Name Loan Origination Company Identifier Loan Origination Company s Address Residential Bancorp Dressler Rd. NW One Bancorp Building North Canton, OH Freddie Mac Form 65 6/09 Fannie Mae Form /09 Page 4 of 4

14 203(k) and Streamlined (k) U.S. Department of Housing OMB Approval Maximum Mortgage Worksheet and Urban Development No See Public Reporting Statement on the back before Office of Housing (exp. 04/30/2011) completing this form (See Notes 1 thru 8 on back) Federal Housing Commissioner Borrower's Name & Property Address (include street, city, State, and zip code) FHA Case Number No. of Units HUD REO? Purchase Thomas T Twoohthreek TBD 1 Yes NO Refinance Arlington, TX Streamlined (k) (Note 6) Type: Owner-Occupant Nonprofit Government Agency Purchase Date (owned less than 12 months) A. Property 1. Contract Sales Price 2. 'As-is' Value 3. After-improved % 5. Borrower Paid Closing Costs 6. Allowable energy Information Or Existing Debt (Note 1) Value of A3 (Note 8) + Prepaids (Refinance) Improvements (Note 2) 279, , , , B. Rehabilitation 1. Total Cost of Repairs (Line 36, HUD-9746-A) includes the improvements in A6 and Other and REO Lead Based Paint Stabilization 28, Allowable Costs 2. Contingency Reserve on Repair Costs ( 10 %) (10 to 20% of B1) 2, Inspection Fees ( 1 x per inspection)+ Title Update Fee ( 1 x per draw) Mortgage Payments Escrowed ( months x ) if uninhabited (Note 7) 5. Sub-Total for Rehabilitation Escrow Account (Total of B1 thru B4) 31, Architectural and Engineering Fees (Exhibits) (Note 7) 7. Consultant Fees (including mileage, if applicable) ( + miles@ /mile) (Note 7) 8. Permits 9. Other Fees (explain in Remarks) 10. Sub-Total (Total of B5 thru B9) 31, Supplemental Origination Fee for both 203k and Streamlined (k) (greater of 350 or 1.5% of B10) Discount Points on Repair Costs and Fees (B10x %) 13. Sub-Total for Release at Closing (Total of B6 thru B9 + B11 and B12 (Note 3) Total Rehabilitation Cost (Total of B5 and B13 minus A6) (Streamlined (k) can not exceed 35,000) 32, C. Mortgage 1. Lesser of Sales Price (A1) or As-Is-Value (A2) 279, Calculation 2. Total Rehabilitation Cost (B14) 32, for Purchase 3. Lesser of Sum of C1 + C2 ( 312, ) or 110% of After-Improved Value (A4) 312, Transactions 4. Base Mortgage Amount: Sum of C3 +(-) Required Adjustment (Note 4) ( ) x LTV Factor (96.5%) (Owner-Occupant) or Less Allowable Down payment/ HUD-Owned Property ( ) (Note 5) 301, D. Mortgage 1. Sum of Existing Debt (A1) + Rehabilitation Cost (B14) + Borrower Paid Closing Costs + Prepaids (A5)+ Calculation Discount on Total Loan Amt minus Discount on Repair Costs (B12) minus FHA MIP Refund ( 0.00 ) for Refinance 2. Lesser of Sum of As-is Value (A2) (Note 1) + Rehabilitation Cost (B14) ( 32, ) Transactions or 110% of After-Improved Value (A4) 3. D2 ( ) x LTV Factor (97.75%) (Owner-Occupant) 4. Base Mortgage Amount Lesser of D1 or D3 (Note 5) E. Calculation for EEM 1. Energy Efficient Mortgage (EEM) Amount (C4 or D4) + A6 (Note 2) F. Summary UFMIP Factor UFMIP Total Escrowed Funds Interest Rate Discount Pts % 5, , % 1. Total Mortgage Amount with UFMIP (C4, or D4 or E1 + UFMIP) 306, DE Underwriter's Signature, Title & Date CHUMS No. Borrower's Signature & Date (Optional) Co-Borrower's Signature & Date (Optional) Page 1 of 2 ref: Handbook form HUD (06/09)

15 Remarks (Continue on separate page if needed) Notes: 1. If owned less than 1 year, use lesser of A2 or Original Acquisition Cost plus Debts incurred for rehabilitation since acquisition. 2. Refer to Mortgagee Letters 05-21, 95-46, and These Allowable Costs may be released at closing, provided paid receipts or contractual agreements requiring payment are obtained 4. Required Adjustments would include additions such as financeable repairs and improvements, energy related weatherization items, and solar energy systems, as well as subtractions including sales concessions in excess of six percent of the sales price, inducements to purchase, personal property items, etc., all as per HUD Handbook (May also include HUD REO Lead Based Paint Credit.) 5. Maximum Mortgage before UFMIP not to exceed statutory limit. 6. See ML Not applicable to Streamline 203(k) transactions. 8. If Condominimum limit to 100% of A3 Public reporting burden for this collection of information is estimated to average 25 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This information collection involves an expanded information requirement for lenders that originate and service Section 203(k) mortgages. The purpose of the information is to help mitigate program abuses. The expanded information focuses on the loan origination process and requires increased documentation and strengthened internal control procedures. Periodic reporting of the information is not required. The information also includes information that was voluntarily accepted by the 203(k) lending community. The information provides a more comprehensive basis for evaluating lender underwriting practices and thereby improves risk management of the 203(k) loan portfolio. Responses are required under Section 203(k) of the National Housing Act (12 U.S.C. 1703). No assurance of confidentiality is provided. Page 2 of 2 ref: Handbook form HUD (06/09)