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National City Mortgage Correspondent Lending is excited and proud to introduce the latest addition to our One Time Close product line, the One Time Close with Modification Rehab Program. This program is available for those lenders with OTC Modification approval.
Many of the fantastic features and benefits of our One Time Close with Modification Construction program are also available in the Rehab portion of this product. A Rehab/Renovation opportunity exists when there is already an existing structure and some type of improvement is going to be made. Everything is processed the same as a One Time Close with Modification Construction Loan, including but not limited to using the same documentation for approval, using the same product guidelines and OTC Modification Rate Sheet, borrowers make interest only payments as funds are disbursed, and there is a modification process upon completion.
The following exceptions apply as compared to the Construction portion of the program:
- Only the Deluxe or Expanded Criteria Products may be used for OTC Rehab.
- If the borrower does not currently own the property, the loan amount must be based on the cost of the property plus the rehab cost (not the appraised value) unless there is going to be a complete teardown of the existing property.
- The disbursement at closing can be based on the total "as is" value (if nothing is going to be demolished). Up to 100% of this amount can be disbursed at closing instead of 100% of just the lot value.
- The appraiser must provide the current "as is" value of the property (if nothing is going to be demolished) either within the body of the appraisal or on an addendum to the appraisal. We do not need a full appraisal on what the current value is.
- The Rehab Draw Schedule (found on the Correspondent Website) should be used unless a complete tear down is being done.
- Any current liens on the property must be paid off at closing.
- No Investment Properties are allowed
Lenders must have a current approval for the One Time Close with Modification Construction program with Correspondent Lending to be eligible to use the One Time Close with Modification Rehab enhancement.
Please contact your Regional Manager, Area Sales Manager, or Account Executive with questions or to request approval for the OTC Modification program.
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