Homebridge has made updates/clarifications to the FHA 203(k) Standard/Limited, Fannie Mae HomeStyle, and VA Renovation programs as detailed below.
FHA 203(k)
- 203(k) Standard
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- Clarified that if a property is being altered to add additional units the maximum loan amount is based on the existing/current property type (e.g. 1-unit to 2-unit, the maximum loan amount is based on 1-unit)
- 203(k) Limited
- Updated to add that Homebridge will require a feasibility study on 3-4 unit transactions (currently not required)
- 203(k) Standard and Limited
- Clarified that self-help transactions are limited to a maximum of three (3) sub-contractors
Fannie Mae HomeStyle
- Clarified that if a property is being altered to add additional units the maximum loan amount is based on the existing/current property type (e.g. 1-unit to 2-unit, the maximum loan amount is based on 1-unit)
- Clarified on transactions utilizing the upfront draw option for materials, the upfront draw is not included in the maximum draw count (5 max.)
- Added a reminder that all contractor bids must provide detailed descriptions of the work and materials, including the make and model, as applicable; costs for materials and labor must be broken out.
- Updated to include second home transactions as eligible to waive the contingency reserve if certain requirements are met (currently only considered on owner-occupied transactions)
- Updated with HUDs recent changes as follows:
- The contractor may be the borrower’s employer, as long as the contractor meets all other contractor requirements, and
- The contractor may be on title as an owner of the subject property but cannot be a borrower/co-borrower on the mortgage.
VA Renovation
- Refinance transactions are now eligible (previously only purchase transactions allowed)
- VA refinance transactions are considered cash-out so a net tangible benefit, that is acceptable to VA, is required
- 100% LTV/CLTV; if the funding fee is financed it must be included in the LTV calculation
- The LTV is based on the lesser of:
- Payoff of the existing loan plus repair costs plus closing costs (including funding fee), or
- 100% of the “after-improved
