Product Overlay Matrix - SWMC.com - Sun West Mortgage Company ...

203(K) Self-HelpTypes of Repairsthat are eligiblefor a 203(k) loanRepairs that areineligible on a203(k) loanNot allowed.Non-Streamline 203(k):Roof replacement, health and safety hazard mitigation, landscaping required to mitigate drainage orerosion issues, aesthetic landscaping when appraiser verifies that the value increases the dollar-fordollarcost, sidewalk/driveway repair necessary for home access, major repair of termite damage,drywall/insulation replacement, most repairs which require permits, finishing basements. Egresswindow wells for basements will be admissible. Additions and utility replacement/reconditioning will bepermissible when borrower(s) decision credit score is 740 or above. Structural and Foundation workwill be permitted as long as the Contractors insurance coverage is sufficient (normally general liabilityinsurance coverage of 1,000,000/each occurrence will be acceptable).Streamline 203(k):Cosmetic Repairs such as financing purchase/installation of new appliances; patching holes; replacingdoors; painting; lead paint abatement; new counters, cabinets, windows, carpet (subfloor repairrequires Non-Streamline 203k); repair/installation of HVAC; weatherization; minor repair of termitedamage. The property should be inhabitable at the time of loan closing.Houses never completed or where the certificate of occupancy was issued less than one year ago.SWMC reserves the right to determine if repairs are deemed unacceptable.Exclusions on a203(k) loanSupplementalOrigination FeeAdditional Forms andWork ExhibitsRequirementsAdditional GuidelinesStreamline 203(k):Upfront draws are only available for documented material costs (with receipts or invoices). If thecontractor is bonded, documenting material cost is not required to obtain an upfront material draw.Draws may not exceed 50% of the entire loan amount. If no draw is required, contractor must providecertification that no initial draw is necessary and that he/she has available funds to complete the costof rehabilitation.Geographic Restrictions: Sun West currently does not offer FHA 203(k) in the state of TX.1.5% of Rehabilitation Amount or $350, whichever is greater, must be charged.Consultant, if applicable• Specification of Repairs and Work Write-up exhibits must itemize material and laborcosts.• Consultant’s Identity of Interest• Master Draw Request (HUD-9746a)Contractor• Work Write-up exhibits must itemize material and labor costs.• Completed IRS-W9• License, E&O and/or Liability Insurance valid until rehabilitation is completed• Contractor Profile Form• Information for Contractors form• Homeowner and Contractor Agreement• Evidence of Assets or Sufficient Lines of Credit (VOD, Bank Statements, Credit linesetc.) to reasonably cover cost of material for rehabilitation. Draw request time line istaken into consideration. Not required when initial draw is provided on 203(K)streamline, see ‘Exclusion on 203(k) loan’ section above.Borrower• Borrower Identity of Interest Certification must be signed and dated by borrower(s),Consul• 203(K) Borrower Acknowledgement must be signed, dated and completed byborrower(s).• Conference call with borrower to be completed by SWMC.LandSafe Title is not acceptable as the title company17