Renovate or Relocate? A panel of experts shared information about choosing design, hiring contractors & renovation financing options available for your next home improvement project. #1850101 Education Series hosted by #1850realty & sponsored by HOCOA Home Repair Network in San Diego

2. Sam Goodwin

15. Smart Construction. Strong Reputation.

22.  Choose a family owned company that looks like this:
*Dave and Tom Norman and families at the Building Homes for Heroes
renovation project home coming for Sgt Joshua Lopez, Nov 2014

23. From the CALIFORNIA STATE LICENSE BOARD
(www.CSLB.gov):
Only hire state-licensed contractors
 Any contractor performing $500 worth of work or more
(including materials and labor) must be licensed by CSLB
to work in California
 Don’t rush into repairs, no matter how badly they may
be needed
Don’t hire the first contractor who comes along or be
caught up in high-pressure sales tactics

24. OTHER Tips:
 Make sure you understand what is being estimated:
Apples to Apples when comparing quotes
 Make sure you understand your budget, priorities,
and timelines (sometimes phases may be required)
 Remember that price isn’t everything and its
important to get what you want

25. First Choice Loan Services Inc.
Dave Stapleton, Senior Loan Officer
760-815-8987 /
dstapleton@fbcmtg.com
RENOVATION
LENDING

26.  What we do
 Products we can offer

27. WHAT WE DO

28. What we do
• We answer your questions
• We help you put scenarios together
• We find the right renovation product
• We validate projects and contractors
• We request inspections and issue draws
• We are your one-stop shop for all things renovation related

29. WHAT PRODUCTS WE
OFFER

30. Renovation Products FCLS
Offers
• FHA 203K Streamline
• FHA 203K Full
• Fannie Mae HomeStyle
• FCLS Conventional Renovation

31. FHA 203K Streamline
• Repairs and renovations up to $35,000
• Must be non-structural in nature
• 96.5% LTV on a purchase; 97.75% LTV on Refi’s
• Owner occupied only

32. FHA 203K Full
Everything allowed on a Streamline 203K PLUS
• Repairs and renovations up to 50% of improved value
• Repairs can be structural in nature
• Requires the use of a HUD Consultant
• 96.5% LTV on a purchase; 97.75% LTV on Refi’s
• Owner occupied only
• Up to 6 months completion time and payments can be
financed into the loan

33. Fannie Mae HomeStyle
• Repairs and renovations up to 50% of improved value
o Fannie’s only requirement is that the repairs are
attached to the property and add value
• Structural repairs allowed
• Can be used on owner occupied, investment properties and
2nd homes!

34. Fannie Mae HomeStyle
• 1 to 4 Units allowed
o 95% LTV on SFR; 80% on 2-unit; 75% on 3-4 units
o 80% LTV on 2nd homes, SFR only
o 75% LTV on investment properties, SFR only
• Min 620 FICO
o 700 if self employed and 720 on investment properties
• Up to 6 months completion time and payments can be
financed into the loan

35. FCLS Conventional
Renovation
• Any repair or renovation that can be completed within 90
days
• LTV Requirements
o Owner Occupied: 95% Purchase and 80% Refi
o Investment and Second Homes: 80% Purchase; 75% Refi

36. Escrow Holdback Products
• FHA Appraiser or Underwriter Required Escrow Holdback
• Appraiser or underwriter required repairs can be financed into
the loan up to $5,000 plus a 10% contingency reserve
• HUD REO with Repair Escrow
• Only eligible on HUD REO’s listed as insurable with repair
escrow (I/E). HUD will allow Minimum Property Required
Repairs up to $5,000 plus a 10% contingency reserve to be
financed into the loan
• Buyer and/or Seller Funded Escrow Holdback
• Buyers may not always want to finance repairs into the loan,
and in some circumstances, a buyer or seller may fund the
non-structural repairs, up to $5,000