Comparing
| Why Choose GDM Mortgage Corp.? | LIMITED 203K | STANDARD 203K | HOMESTYLE |
|---|---|---|---|
| EXAMPLES OF ELIGIBLE REPAIRS |
Updating a kitchen or bathroom Adding new floor Purchasing new appliances Repairing the roof Upgrading HVAC system and other energy efficient upgrades |
Building an addition Building a new garage Tearing down and rebuilding Upgrading mechanical systems Installing a well and/or septic system Updating the interior |
Renovating kitchens and bathrooms Updating landscaping and site amenities Adding square footage to the home Putting in new flooring Repairing pool and/or spa |
| DOWN PAYMENT AND LOAN-TOVALUE (LTV)* |
3.5% (96.5% LTV) | 3.5% (96.5% LTV) | 1 Unit Primary – 3% (97% LTV) [At least one borrower must be a first-time homebuyer] 1 Unit Primary – 5% (95% LTV) 1 Unit Second Home – 10% (90% LTV) 1 Unit Investment – 15% (85% LTV)Mortgage Insurance (MI) is required forany LTV that exceeds 80%. |
| ELIGIBLE PROPERTY TYPES |
1-4 unit properties Condominiums (internal repairs only) Townhomes (internal repairs only) |
1-4 unit properties Condominiums (internal repairs only) Townhomes (internal repairs only) |
|
| ELIGIBLE OCCUPANCY TYPES |
Primary | Primary | Up to 5 draws |
| NUMBER OF DRAWS | 1 initial and 1 final draw per contractor |
Up to 5 draws | Up to 5 draws |
| ADVANCES | Up to 50% of repair cost can be distributed at closing when requested in writing prior to close. |
Not allowed | Not allowed |
| MATERIALS DRAWS | Not allowed | Not allowed | Case by case, up to 50% of total materials budget, based on need |
| PROOF OF PERMITS | Required within 30 days of loan closing |
Required on or before first draw | Required on or before first draw |
| HOLDBACKS | No holdbacks on draws | 10% holdback on all draws, except final draw | 10% holdback paid out with final draw |
| CONTINGENCY FUNDS AND CHANGES TO SCOPE OF WORK |
Contingency funds are intended for unforeseen repairs. Once all items on the bid are completed, contingency funds may be used for additional repairs or applied as a principal reduction. |
||
| COMPLETION DATE | Work must begin within 30 days of loan closing, may not cease for any 30 consecutive day period and must be completed within 6 months of loan closing. |
||
