FHA has announced that the new 203(k) Calculator in its FHA Connection (FHAC) system is now available for use. The new 203(k) Calculator automates Maximum Mortgage Amount calculations required for both Standard and Limited 203(k) programs and is accessible in both a public version on HUD.gov (for transactions without a case number) and a secure version within the FHAC system (for transactions with a specified case number). The 203(k) Calculator was added to FHAC and HUD.gov websites to allow lenders to:
- Determine the maximum base mortgage amount;
- Determine the loan-to-value (LTV) factor for maximum mortgage eligibility;
- Calculate the LTV for the application of the annual mortgage insurance premium (MIP); and
- Establish details of the 203(k) escrow account.
The use of the 203(k) Calculator in FHAC is currently optional, but will become mandatory on all 203(k) transactions with case numbers assigned on or after October 31, 2016. Once the user completes data entry in the FHAC 203(k) Calculator, the user will print the completed 203(k) Worksheet directly from FHAC and that will be the worksheet that will be required to be in file not the one offered in ConformX. Please click here for processing instructions or questions about the FHAC 203(k) Calculator screens.
This means that our version of the 203(k) – Maximum Mortgage Worksheet (Cx3398) will be obsolete and should be phased out by October 31, 2016.
If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
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