Make Your Dream Home Come True

Bo Smith Mortgage Financing Expert NMLS 92100 Office: 601.982.1153 bosmith@houseloan.com BoKnowsMortgages.com Licensed by the Mississippi Department of Banking and Consumer Finance NMLS 92100 Not a commitment to lend. Borrower must meet qualification criteria.

Mike FearnChampagne Fearn and Builders, Inc.Office: 228.388.0903mchl_fearn@yahoo.comChampagneAndFearn.com

This is your year!

Absolute Responsibility 

Take absolute responsibility for where you are this momentWhat we think and how we continue to think controlsThe outcome of your life, your achievements and your successRealize that the habit of studying the mind changes your entirelife and creates growth

From this day forward do extraordinary things.

-Michael Fearn

203(k) By Definition

It is a single home loan with a long-term fixed or adjustable rate that is used to both finance and rehabilitate the property. The financing amount is based on the estimated value of the property after taking into account the cost of the work required.

How Can FHA 203(k) Loans Be Used?

1. To purchase and rehabilitate a home

2. To purchase a dwelling, move it to another site and rehabilitate it

3. To refinance an existing mortgage to rehabilitate the property

FHA 203(k) loans are used in three different ways:

Streamline 203(k) Loan

• For homes that need minor repairs

• Allows borrowers to finance the purchase of a home and make improvements or upgrades costing up to $35,000 prior to moving in

• No minimum repair costs

• Borrower must occupy the property as their principal residence

Before and After

Old Side of House New Side of House

Standard 203(k) Loan

• For homes that need major rehabilitation: – Structural repairs – Landscaping improvements – Renovation costing more than $35,000

• Minimum of $5,000 worth of repairs required • Borrower must occupy the property as their principal residence • FHA loan limits are based on property type and location of property • A portion of the loan proceeds are used to pay the seller or, in the case

of a refinance, to pay off existing mortgage • Remaining funds are placed in escrow and released as repairs are

completed• May roll in up to six months of mortgage payments if the HUD

consultant determines you must be displaced during repairs

Before and After

Due to the home’s dilapidated state, the contractor had to

refinishfloors, prep all the walls for

paint, replace all exterior doorsand bring all electrical aspects

ofthe home up to code.

203(k) Process from Start to Finish

1. Find a property and make an offer

2. Find an FHA-approved lender experienced with 203(k) loans

3. Have the property appraised

4. Home loan is approved and closed

5. Property rehabilitation begins

6. Escrowed funds are released

Property Eligibility Requirements

General requirements:

• Must be a one- to four-family dwelling • Construction must have been completed for at least one year • May be used to convert a one-family dwelling to a two-, three-

or four-family dwelling

• A multi-unit dwelling may be decreased to a one- to four-family unit

Before and After

Gutting the entire kitchen let the

borrower completely decide what

she wanted to have in her kitchen

Eligible 203(k) Renovations

• New hardwood flooring• New doors and windows• Plumbing and electrical upgrades• Floor plan expansion• New granite countertops• Vaulting the ceilings• GREEN improvements and enhancements• Neck deck/patios• New fixtures for bathtubs, sinks and kitchens• Making a house handicap accessible• Getting a house ready for a college student• Solar panels• Low flow toilets and shower heads

• New freestanding appliances• Bathroom remodeling• Master bedroom suite remodel• Upgrading HVAC• Energy efficient improvements• Wells and septic repair and upgrades• New siding• Interior or exterior painting• Attic build-outs• Basement waterproofing• Media room addition• Second floor addition• Basement finishing• Floor plan additions

Before and After

Adding a built-in to this home’sliving area and pulling up the

carpetto expose the original

hardwood floors made the home

look crisp and clean.

Maximum Mortgage Amounts

Purchase The lesser of the below choices: 1. The value of the property before renovation plus the estimated cost of

rehabilitation, multiplied by 96.5 percent 2. The purchase price of the property plus the estimated cost of rehabilitation,

multiplied by 96.5 percent 3. 110 percent of the estimated post-rehabilitation value of the property

Refinance The lesser of the below choices: 1. The existing balance on the mortgage prior to rehabilitation, plus the

estimated cost of rehabilitation and allowable closing costs 2. The as-is value plus rehabilitation costs 3. 110 percent of the estimated post-rehabilitation value, multiplied by 97.75

percent

Client Testimonial

Jon and Jamie’s Home Tour

QR Code

QR Code - short for Quick Response

With the snap of a camera phone, your clients will be instantly directed to your website!

www.AnnaKral.com

www.mscostproperties.com

Potential Cost Breakdown

 HOT WATER HEATER• Remove and Replace with new 50 gallon water heater

Electric $950.00Gas $1,050.00

HVAC SYSTEM• Remove and install new inside/outside HVAC system 13 seer $3,566.00 NEW FLOORING• New Flooring carpeted bedroom ceramic kitchen/baths/utility $4,800.00 LIGHTING FIXTURES•Replace 1 light fixture material/labor $120.00•Replace entire home lighting material/labor $1,025.00 INTERIOR ELECTRICAL•Replace the interior breaker box $650.00•Replace 1 interior circuit breaker $85.00•Replace a receptacle or light switch $78.00•Add a receptacle or light switch $195.00•Add 110 plug-in $110.00•Hang ceiling fan with new switch $180.00

KITCHEN• Remove/Add new cabinets and countertops $6,150.00•Replace Countertops only $1,375.00•Add New Sink with New faucet $575.00•Add new Faucets only $285.00

BATHROOM• New vanity with new faucets and Corian marble tops

$600.00•Replace toilet $340.00•Tear out entire bath and replace (not including floor)

$4,800.00•Replace all bathroom faucets $1,425.00

 INTERIOR DOORS•Remove and replace 1 door $295.00•Remove and Replace all interior doors $3,770.00

ATTIC INSULATIN• Bring attic insulation to R-38 $850.00 PAINT INTERIOR• Prep and Painting of the whole interior home and garage

$3,350.00

Potential Cost Breakdown

SECURITY/PHONE/CABLE•Security pre-wire whole house $420.00•Run new Phone and Cable jacks whole house $680.00  EXTERIOR ELECTRICAL•Replace entire exterior breaker box $1,200.00•Replace 1 Circuit Breaker $85.00•Add Flood Light new electrical $178.00  NEW ROOF• Remove and replace with new architectural shingle

$6,850.00 NEW WINDOWS• Remove all windows replace with new vinyl LOW E (Total 8) $3,830.00    

NEW DOORS•Replace Front and Back doors with hardware $1,290.00•Replace Front Door with hardware $750.00

GARAGE DOOR• Replace with new 140mph door with remote

Single door $1,425.00Double door $1,650.00

Champagne Fearn and Builders, Inc.

Est. 1987

Our company is based upon the building of affordable and quality work-force housing.

Over the past 5 years, we have accomplished the following:

• Brodie Crossing, Janus Landing and Malpass Subdivisions – 357 lots

• Restoration – after Hurricane Ike, we rebuilt 20 properties

• Developed many commercial condominiums and office buildings

• Retrofit buildings to meet Mississippi Wind Storm requirements

Today

Today, is a new me with a new beginning and no past doubts.Today, my enthusiasm overflows knowing powerful ideas are created

awaiting my plan for action, which I will persist on until completed.Today, my mind is positive and I am a positive self talker.Today, my appreciation is endless. Appreciation promotes happiness

so I am always happy. 

-Michael Fearn and Bob Proctor

Champagne Fearn and Builders, Inc.

183 Beauvoir Road Biloxi, Mississippi 39531

Mike FearnChampagne Fearn and Builders, Inc.Office: 228.388.0903mchl_fearn@yahoo.comwww.champagneandfearn.com

Contact Your 203(k) Loan Expert!

Bo Smith Mortgage Financing Expert NMLS 92100 Office: 601.982.1153 bosmith@houseloan.com www.BoKnowsMortgages.com

Licensed by the Mississippi Department of Banking and Consumer Finance NMLS 92100

1900 Lakeland Drive, Suite 5 Jackson, Mississippi 39216