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Renovation Loans – How to set up fees and run AUS

Step One – Apply

Closing Cost Template

For all FHA 203k and

Conventional HomeStyle

loans make sure to apply

the “2015 Renov Retail

Closing Cost Scheme”.

Step Two – 2015

Itemization

Check Your Fees.

The fees listed on the

Renovation Disclosing

Chart should match your

fees in Encompass. The

screen shots in this

document provide

samples of the fees and

where they are in

Encompass.

Step Two (cont.) 2015 Itemization Screen Shot #1

The purpose of this document is to outline the steps required for setting up fees associated

with FHA 203k and Conventional HomeStyle loans. We have also outlined the additional

steps to correctly run your AUS Automated Underwriting (DU). This document references

the Renovation Disclosing Chart which lists all of the fees and their designations in

encompass.

If you have questions or need assistance please contact your assigned Renovation Specialist or email the

Renovation team at renovationquestions@ulc.com.

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Step Two (cont.) 2015 Itemization Screen Shot #2

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Step Two (cont.) 2015 Itemization Screen Shot #3

Step Three – fill out your Maximum Mortgage Worksheet

If you do not know how to fill out the Maximum Mortgage Worksheet please email your assigned

Renovation Specialist and they will assist you. If you do not know your assigned Specialist, please email

the Renovation Team at renovationquestions@ulc.com.

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Step Five – Underwriters

Your underwriter will print the LUTZ (HUD 97200 FHA Transmittal) and change the costs to reflect what

is in section F.

Step Four – Running Automated Underwriting

Go to the VII. Details of Transaction in your 1003 application.

Subtract section F from B. (when you start the calculation F will have a large

figure that includes all of the alterations and closing costs.)

LOCK section F and put the difference you calculated in the locked field.

If there is a Reno

Credit/Adjustment

in section L

…remove it.

There should

never be a credit

in this section

for Renovation.

NOTE! Any time you need to re-run your AUS you must unlock this field, recalculate (F minus B), relock the field and put the difference in F.