STANDARD 203(k) PURCHASE TRANSACTION
MAXIMUM MORTGAGE CALCULATION
Additions to Initial Base Mortgage Amount for EEM, and/or Solar/Wind Energy
Step 4:
Note: If no EEM or Solar/Wind additions, then Initial Base Mortgage amount (3F) = Final Base Mortgage amount (4G)
$________
A.
Energy Efficient Mortgage (EEM) Improvement Amount
Step 3E + Step 4A
$________
B.
(Initial Base Mortgage Amount + EEM Improvement Amount)
$________
C.
Solar/Wind Energy System Actual Cost
$________
D.
Step 2F x 20% (After-Improved Value x 20%)
$________
E.
Lesser of (Step 4C or Step 4D) = Maximum financeable Solar/Wind Energy amount
$________
F.
Step 3E x 120% (Nationwide Mortgage Limit x 120%)
$________
G.
Final Base Mortgage Amount = Lesser of (Sum of Step 4B + Step 4E) or Step 4F
Calculating the LTV for Application of Annual MIP
Step 5:
Note: If no EEM or Solar/Wind additions, then Initial Base Mortgage amount (3F) = Final Base Mortgage amount (4G)
A.
MIP LTV = 4G divided by 2F (Final Base Mortgage Amount divided by After Improved Value)
_________%
Step 6:
Establishing the Rehabilitation Escrow Account
$________
A
Rehabilitation Escrow Account (Sum of A1 thru A3)
1. Repair and Improvement Costs, Fees & Reserves (Step 1E)
$________
2. Cost of EEM, weatherization or solar energy systems
$________
3. Borrowers Own Funds for Contingency Reserves (if not financed in 6:A1)
$________
$________
B
Initial Draw at Closing Total (Sum of B1 thru B7)
1. Prepaid 203k Consultant Fees
$________
2. Prepaid Architectural or Engineering Fees
$________
3. Permit Fees
$________
4. Origination Fees (Step 1:D1)
$________
5. Discount Points (Step 1:D2)
$________
6. Material costs for items ordered & prepaid by
Borrower/or contractor (under contract for delivery)
$________
7. Up to 50% of materials not yet paid for by the Borrower/or contractor
$________
$_________
C.
Rehabilitation Escrow Amount Balance for Future Draws = 6A minus 6B
Mortgagees must consult HUD Handbook 4000.1 for detailed guidance on all 203(k) loan transactions.
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Last Updated 04/01/2016
STANDARD 203(k) PURCHASE