735 Ceramic Place Suite 220 Westerville, OH 43081 P: 614-818-4600

Fax: 614-818-4602 Ph: 888-818-4680 www.concordmortgagegroup.com

Streamlined 203K
Borrower selects contractor(s) and submits bids itemizing work to be completed that are signed and executed by the borrower and contractor. Licencing, bonding, and/or review of contractor(s) to be provided.

Streamlined 203K Work Items: Eligible Improvements: Repair/Replacement roofs, gutters and downspouts. Repair/Replacement/upgrade of existing HVAC systems Repair/Replacement/upgrade of plumbing and electrical systems Repairs/Replacement of existing flooring Minor remodeling, such as kitchens, which does not involve structural repairs Exterior and interior painting Weatherization: including storm windows and doors, insulation, weather stripping, etc. Purchase and installation of appliances may include free-standing ranges, refrigerators, washer/dryers, dishwashers and microwaves. Improvements for accessibility for persons with disabilities Lead based paint stabilization or abatement Repair/replace/add exterior decks, patios, porches Basement finishing and remodeling not involving structural repairs Basement waterproofing Window and door replacement and exterior wall re-siding Septic system and/or well replacment Ineligible Improvements: Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall; New construction (including room additions); Repair of structural damage; Repairs requiring detailed drawings or architectural exhibits; Landscaping or similar site amenity improvements; Any repair or improvement requiring a work schedule longer than six (6) months; or Rehabilitation activities that require more than two (2) payments per specialized contractor

203KS Guidelines Rev. 8/2009

203KS REHABILITATION PROCESS:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Buyer submits all loan approval paperwork to Concord Mortgage Group. Buyer is approved for a maximum loan amount. Buyer decides what work is desired on the home. Buyer signs purchase contract for the home. Buyer gathers fixed priced contracts for all desired work to be completed. Chosen contractors complete and submit items 1-9 of the Contractor Checklist as required. Appraiser inspects property to determine if after-improved market value will support improvements. Appraiser notes any deficiencies that must be corrected to meet FHA minimum property standards. Additional bids gathered for any FHA required repairs (if needed). Loan closes and escrow account for repairs is established with a 10-20% contingency. Please allow 20 days from closing for the escrow account to be set up and for initial disbursement checks for materials (if requested) to be issued. Buyer (now Homeowner) may now notify contractor to begin. Work is to begin no later than 30 days after closing and complete no later than 180 days after closing. If work does not start within 30 days or if work ceases for 30 consecutive days, Concord Mortgage Group must be notified of the reason for the delay. Any request for changes to original plans due to unforeseen repairs necessary to complete the original work must be submitted on HUD-92577, Request for Acceptance of Changes in Approved Drawings and Specifications, signed by both the contractor (as Builder or Sponsor) and Homeowner (as Borrower). A 10-20% contingency is available for these additional costs. Concord Mortgage Group does not arbitrate disputes between Homeowner and Contractor. Once improvements are complete, contractor provides Final Invoice to Homeowner. Homeowner and Contractor complete and sign a copy of the Disbursement Request Form for completed work Homeowner and Contractor submits a Final Invoice and Disbursement Request Form to Processor along with any permits obtained for the completed work. Final Inspection by Appraiser or HUD Fee Inspector and Title Updates are ordered by Concord Mortgage Group. Checks are made payable to Borrower and Contractor and delivered to the borrower per instructions approximately 10-15 days after submission of Disbursement Request Form.

12. 13. 14.

15.

16. 17. 18. 19.

20.

21.

22.

203KS Guidelines Rev. 8/2009