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LS/11-10-2015
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 [email protected].
LS/11-10-2015
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 [email protected].
LS/11-10-2015
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.