renovation mortgage products · product overview caliber home loans offers a selection of loan...

Renovation Mortgage Products

Caliber Home Loans, Inc., 3701 Regent Boulevard, Irving, TX 75063 (NMLS #15622). 1-800-401-6587. Copyright ©2016. All Rights Reserved. Equal Housing Lender. For real estate and lending professionals only and not for distribution to consumers. This communication may contain information that is privileged, confidential, legally privileged, and/or exempt from disclosure under applicable law. Distribution to the general public is prohibited.

About Caliber Home LoansCaliber Home Loans, Inc. is a dedicated national

mortgage lender. Our expanding inventory of loans

include conforming, Jumbo, and government

products. We also offer our own non-Agency

products.

Our core strengths include our innovative

mortgage solutions, customer-centric corporate

culture, and a management team with decades of

industry experience. These strengths enable us to

provide superior service to real estate

professionals and their clients.

As your local Caliber Home Loans representative,

I’m committed to providing personal, expert

guidance to your clients throughout the entire

home financing process.


Product OverviewCaliber Home Loans offers a selection of loan products

designed specifically for homes in need of renovation.

They include:

FHA 203(k) Rehab

Caliber offers two FHA 203(k) products:

§ Standard “Full” 203(k) – Provides financing

for major projects, including structural repairs.

§ Streamline “Limited” 203(k) – Provides

financing for minor remodeling and non-structural

repairs, such as kitchen or bathroom updates

for modernization.

§ Unlike the Standard 203(k), a HUD consultant

isn’t required but may be used to

meet inspection requirements.


Product OverviewCaliber Home Loans offers a selection of loan

products designed specifically for homes in need of

renovation. They include:

HomeStyle® Renovation

This Fannie Mae program is similar to the

FHA 203(k) program, with additional benefits:

Homebuyers may use their additional funds for

non-essentials such as adding a swimming pool or

financing a major landscaping project.

§ Two levels of renovation/funding are available:

Level II and Level III.

§ Generally, homebuyers may qualify for more

funds with HomeStyle Renovation.


Escrow Holdbacks for Minor Repairs

Smaller amounts of funding can be provided with an escrow holdback. These are available for most

types of loans, including GSE, government-insured, Jumbo and Portfolio Lending Suite products.

Weather-Related/General Escrows – This method can fund minor repairs such as external paint and

landscaping. Funds are limited to 10% of the property’s value or $5,000 (VA loans may qualify for up to

$6,000)

Non-Agency Portfolio – This method is available for most Caliber Portfolio Suite loan products. It can

fund minor repairs similar as those covered by general escrow funding. Funds are limited to 10% of the

property’s value or $5,000.


Choosing the Right Renovation Loan

The next slides will explain the pros and

cons of all available renovation options.

This will help you understand which

loan products are ideal for any “fixer-

upper” properties you’re selling.

One major benefit offered by all

products is that they can help you close

loans with sellers who prefer to lower a

property’s sale price than to carry out

improvements requested by potential

buyers.


FHA 203(k) Rehabilitation Loan

Since different properties require different levels of repairs, the 203(k) loan is offered in two levels:

Standard and Streamline. The major differences in these two is that the Standard 203(k) is required for

properties requiring structural repairs and for projects exceeding $35,000.

§ Standard “Full” 203(k) – Provides financing for major projects, including structural repairs. A HUD

consultant who specializes in preparing the documentation for 203(k) loans, and the contractors

required to carry out the repairs, is required. A Full 203(k) offers more funding for repairs than a

Streamline 203(k).

§ Streamline “Limited” 203(k) – Provides financing for minor repairs, such as updating one or more

rooms. Unlike the Full 203(k), a HUD consultant is not required but may be used to meet inspection

requirements. The maximum additional funding for a Streamline 203(k) is $35,000.


203(k) Loan Basics

The following features apply to both 203(k)

Streamline and Full loan products:

§ Available in 30-year fixed terms only

§ High balance loans are available

§ Energy-Efficient (EEM) improvements

are allowed

§ Owner-occupied properties only

§ Properties must be at least one year old


HomeStyle Renovation

Our HomeStyle® Renovation Mortgage helps you sell homes in need of repair, renovation, updates or

enhancements. However, HomeStyle Renovation can be a better choice than the FHA 203(k) for buyers

who prefer additional options.

§ Higher amounts of renovation funds may be available. Additional financing available up to 50% of the

property’s “post-renovation” appraised value.

§ Buyers may use their funds to finance non-essential projects, such as a swimming pool or

landscaping.

§ Both fixed-rate and ARM loan terms are available.

§ Buyers are not limited to owner-occupied properties. Second homes and investment properties may

qualify.

§ FHA mortgage insurance premiums are not required.


HomeStyle Renovation

This table illustrates the main differences in these two loan programs. HomeStyle Renovation offers more

flexibility in several areas, including eligible improvements and property types.

HomeStyle Renovation FHA 203(k) Rehab

Eligible Property Types Single family residences, PUDs, modular homes, 2-4 unit properties, new construction

Single family residences, PUDs, modular homes, 2-4 unit properties

Condos and coops? No No

Investment properties? Yes No

LTV 95-75%, varies depending on occupancy type and product (Fixed, ARM, High Balance). 96.5%

Eligible improvements No restrictions, improvements must be permanently affixed to the property

No luxury improvements, no tear down properties

Mortgage Insurance (MI) Required Yes, if down payment is less than 20% Yes


Work With a Renovation Specialist

Since the FHA 203(k) and HomeStyle Renovation loans require additional planning and paperwork, only

a limited number of Loan Consultants can offer these products to borrowers.

§ Caliber Home Loans provides mandatory training sessions for every Loan Consultant who offers

HomeStyle Renovation loans.

§ In addition to completion of their training, each HomeStyle Loan Consultant must obtain formal

approval from their Divisional Vice President before offering renovation products.

§ Working with a trained Loan Consultant helps expedite your client’s negotiations with the licensed

contractors and renovation consultants, making the entire process easier and less stressful.


More products. More choices. More advantages.

Providing our REALTOR® associates with a variety of home renovation financing products plays an

important role in our mission to help you close more sales. Our core strengths include our innovative

mortgage solutions, customer and sales-centric culture, proprietary H2Online loan origination system,

and entrepreneurial senior management team. These strengths make Caliber unlike any other mortgage

lender within the industry, and enable us to provide your clients with a superior service experience.

Contact me today to learn more.

Rob MangiaracinaNMLS ID 448684Sales Manager847-721-4578844-275-3578

[email protected]/rmangiaracina

renovation mortgage products · product overview caliber home loans offers a selection of loan...

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