The maximum mortgage worksheet is typically used by internal mortgage professionals. It is used to determine the total renovation dollars and loan amounts. There are several factors that should be considered described in the video below. Factors include renovation hard costs bids, permitting, inspections, title updates, architectural designs, HUD Consultant fees, supplemental origination fees, contingency reserves and payment abatement.
Maximum Mortgage Worksheets & renovation loans
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203k MMW
On the limited 203k, the MMW is in the most streamline format. There is no consultant needed or payment abatements on these. Because of the type of product it shouldn’t have architectural fees. 203k limited example MMW. The Standard or “Consultant” 203k will require a HUD consultant because of structural repairs or the renovation amount. Because of this, you could have additional architectural expenses and additional title update and inspection fees. You will see there are additional lines for these considerations but not necessarily required. There is also the ability on this type of loan for payment abatements during the time of construction. See this Standard 203k MMW example.
VA Renovation
VA Renovation does not allow for payment abatements on any of their loan types. It does however mirror the consultant fees in repairs over 35k and or repairs that are structural in nature. You will also see differences for the appraisal constraints. The downpayment is based on entitlement but in most cases zero down payment. Other than these few nuances the 203k limited and standard guides mirror the VA counterparts. See the limited VA Renovation MMW and the Consultant VA renovation MMW here.
Homestyle renovation MMW
The homestyle renovation loan has many options. There are too many possibilities to list based on down payment options, occupancy and complexity. For Primary residence in these examples, you have options to include payment abatement. using a consultant depending on your project q. Here is a example of a primary residence with a limited Homestyle MMW and a full consultant Homestyle MMW.
MMW wrap up
There are several options when seeking renovation finance. Importantly, you can even use these products for refinance which is not shown in example here. You should ask your mortgage professional to run these scenarios for you so you know what is best in your situation. Call, Click or Come in to get a full explanation of you customized maximum mortgage worksheet!