Career Center - Christensen Financial Inc.

Benefits of a 203(k) Loan

Property Improvements:

Properties that are sold “as-is” often would not qualify for a standard FHA loan.
However, 203(k) loans are designed to improve, update and modernize the home.
You can purchase a home that does not require repairs and finance the cost of “modernization” or cosmetic repairs. (See eligible improvements).
The loan allows for 1-4 unit dwellings, including condominiums.
Where zoning allows, a 203(k) loan can be used to convert a single family dwelling to 2-4 units and vice versa. (See eligible properties.)
Up to six months of PITI (principal, interest, tax and insurance) payments can be financed to assist those who would otherwise be required to make double-housing payments. Consultant will determine the number of months house will be uninhabitable for financing of payments. (Consultant K only).
The loan can be used for complete reconstruction of a home on its original foundation.

Financing Flexibility:

Refinance and renovate your existing home.
The loan enables you to purchase foreclosure properties that require repairs. Most HUD Foreclosure properties could benefit from a 203(k) loan..
Up to 110% (100% on condominiums) of the after improved value of the home may be used as basis for mortgage calculations. (The appropriate LTV factor is then applied.)
Buyers who purchased a property with cash can use the 203(k) program to complete repairs/ modernization and replenish funds used at the time of purchase. Mortgage must close within 6 months of cash purchase.
Properties in “below-average” condition can be upgraded through repairs and maintenance (i.e., new roof, fix broken windows, and lead paint abatement). Increase square footage by building an addition, building a second floor or finishing a basement or attic space. (Consultant K only.)

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Common Questions


What property type(s) can be financed at Christensen Financial Inc?
	Most property types except Co-ops, condohotels. Some property types are not eligible for certain programs. Some property types also require the loan to be underwritten at the investor.

What are your turn times?
	Underwriting turn times are less than 2 days, generally 24 hours. Most loans close between 21 to 27 days depending on the loan and contributing variables.

Does Christensen Financial Inc offer in house processing?
	Yes, we have seasoned processors that will provide you with a needs list within 1 day.

What is the cost of Corporate Processing?
	The cost is $595 per closed loan and is collected on the LE/CD.

Does CFI underwrite the loan?
	Yes, we offer in house underwriting. Some programs or properties might require 2nd level review. Plus, You have access to discuss files with your underwriters.

How can I ensure my loan pipeline transition will be smooth?
	We have a transition team to help you.

Compare Your Options

	FHA Standard 203(k)	FHA Limited 203(k)	VA Renovation	Fannie Mae HomeStyle®	Conventional Cash-Out
Minimum Credit Score	640	640	620	620	620
Maximum Loan Amount	County Limits	County Limits	$453,100	$453,100	$453,100
Maximum Loan-to-Value	96.5%	96.5%	100%	95%	80%
Loan Category	Government	Government	Government – guaranteed by the VA	Conventional – Fannie Mae	Conventional – Fannie Mae
Loan Type	Single Loan Renovation	Single Loan Renovation	Single Loan Renovation	Single Loan Renovation	Cash-Out Refinance
Loan Purpose	Purchase or Refinance – Expands Home Purchase Choices!	Purchase or Refinance – Expands Home Purchase Choices!	Purchase or Refinance – Expands Home Purchase Choices!	Purchase or Refinance – Expands Home Purchase Choices!	Refinance
Renovation timeframe	6 months	6 months	4 months	6 months	N/A
Eligible properties	Primary Residence – Single Family Residence, PUD, FHA approved Condo, 2-4 units & REO	Primary Residence – Single Family Residence, PUD, FHA approved Condo, 2-4 units & REO	Primary Residence – 1 or 2 units	Primary Residence, 2nd Home, Investment Property and condos	Primary Residence – Single Family Residence, PUD, FHA approved Condo, 2-4 units & REO
Down Payment Requirement	3.5% Down, may be gifted	3.5% Down, may be gifted	0%	5% Minimum Down	N/A
Contingency Reserve	A minimum of 10% and a maximum of 20% in contingency reserves for repair costs is required.	A minimum of 10% and a maximum of 20% in contingency reserves for repair costs is required.	15-20% based on renovation costs	10-15%	N/A
Draw limits	Up to five (5) total draws allowed in a six month period	No more than one (1) draw is allowed.	Up to three (3) total draws allowed in a four month period	N/A	N/A
Allowable Improvements	Structural alterations and additions, kitchen or bath remodel, replace roof and much more! (No luxury items)	Kitchen or bath remodel, replace roof, upgrade heating, replace plumbing, windows, doors and much more! (Structural work not allowed) $35,000 cap must include fees. (No luxury items)	Cosmetic and minor remodeling. Must be minor and non-structural. $35,000 cap includes required contingency and re-inspections. (No luxury items)	Must be built-in and add value – LUXURY items such as outdoor BBQ & pools allowed!	N/A; Home must be safe, sound and structurally secure according to conventional standards prior to closing.
Minimum in repairs	Minimum $5,000 in repairs	No minimum dollar amount in repairs, Maximum of $35,000 including fees	No minimum renovation cost; Maximum of $35,000 including fees	No minimum dollar amount in repairs. Renovation cost is limited to 75% of the “as-completed” value.	N/A
Plan Requirements	Work Write-Up required	Work plan provided by borrower required. Work Write-up NOT required	Work plan provided by borrower required. Work Write-up NOT required	N/A	N/A
Loan Amount	Based on the sales price or as-is appraised value + repair amount OR 110% of the “as-completed” value, whichever is less.		100% of the “subject-to” appraised value.	The loan amount is based on total LTV derived from lesser of: · Total acquisition cost including all construction related expenses · Or from the ‘as completed’ value of the home	Up to 80% of appraised value

*Please Note: Details above constitute a condensed overview of guidelines and are not an exhaustive list. Consult your Loan Officer for all restrictions and guidelines pertaining to your situation as not all guidelines are listed.

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Benefits

Culture

"I cannot say enough good things about CFI. From the Underwriters to the support staff I am treated like my clients are as important to them as they are to me. Thank you for helping me have my best year ever!"

Jerry S. - Branch Manager White House, TN

"I can’t tell you how happy we all are to be a part of this amazing team.. We have such support from ALL of the Christensen Family. Our branch has always been a good team, but I feel like “we’re” home now"

Patty L. - Processor Melbourne, FL

"Thank you CFI for taking personal interest in my business. Helping me close loans is what it is all about and I really appreciate you all."

Steve I. - Branch Manager Longwood, FL

"I can’t tell you how happy we all are to be a part of this amazing team.. We have such support from ALL of the Christensen Family. Our branch has always been a good team, but I feel like we’re home now"

Patty L. - Processor Melbourne, FL

Christensen Financial, Inc.

Property Improvements: