Comparing Renovation Loan Options
|LIMITED 203K||STANDARD 203K||HOMESTYLE|
|EXAMPLES OF ELIGIBLE REPAIRS||
|DOWN PAYMENT AND LOAN-TO-VALUE (LTV)*||3.5% (96.5% LTV)||3.5% (96.5% LTV)||1-Unit Primary: 3% (97% LTV) [At least one borrower must be a fi rst-time homebuyer]
1-Unit Primary: 5% (95% LTV)
1-Unit Second Home: 10% (90% LTV)
1-Unit Investment: 15% (85% LTV)
Mortgage Insurance (MI) is required for any LTV that exceeds 80%.
|ELIGIBLE PROPERTY TYPES||
|ELIGIBLE OCCUPANCY TYPES||Primary||Primary||Primary, Secondary, Investment|
|NUMBER OF DRAWS||1 initial and 1 final draw per contractor||Up to 5 draws||Up to 5 draws|
|ADVANCES||Up to 50% of repair cost can be distributed at closing when requested in writing prior to close.||Not allowed||Not allowed|
|MATERIALS DRAWS||Not allowed||Not allowed||Case by case, up to 50% of total materials budget, based on need|
|PROOF OF PERMITS||Required within 30 days of loan closing||Required on or before first draw||Required on or before first draw|
|HOLDBACKS||No holdbacks on draws||10% holdback on all draws, except final draw||10% holdback paid out with final draw|
|CONTINGENCY FUNDS AND CHANGES TO SCOPE OF WORK||Contingency funds are intended for unforeseen repairs. Once all items on the bid are completed, contingency funds may be used for additional repairs or applied as a principal reduction.|
|COMPLETION DATE||Work must begin within 30 days of loan closing, may not cease for any 30 consecutive day period and must be completed within six
months of loan closing.
Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.