Knowledge Base .: 0701 Completing the 203K Worksheet

0701 Completing the 203K Worksheet

  • For Purchase Transactions
  • For Refinance Transactions

**For Purchase Loans.

  1. Start from the Borrower Information Screen.
  2. Enter actual Sales Price.




  3. Click the Mtg Insurance button at the bottom of the screen.
  4. Enter the up-front mortgage insurance premium and monthly mortgage insurance. These may also change as the loan progresses.

  5. Go to the Fees Worksheet and enter all the fees that are associated with the loan.
  6. rom the menu bar, select Forms > Federal Housing Administration (FHA) > FHA 203K Worksheet (HUD-92700)

    Note: Check the 203k Streamline checkbox if it is a 203(k) streamline.

  7. Scroll to section A. Property Information.
  8. Enter the Contract Sales Price and "As is" Value. You may assume that the "as is" value is the same as the sales price.
  9. Estimate the "After Improved" Value. You can use the same as the loan amount for now but the actual after improved value will be provided in the appraisal report.
  10. Borrower Paid Closing Costs will populate automatically from the Fees Worksheet.
  11. Enter the Allowable Energy Improvements if applicable.


  12. Scroll to section B. Rehabilitation and Other Allowable Costs
  13. In B1. Total Cost of Repairs - enter the amount of repairs.
  14. In B2. Contingency Reserves - typically 10%. (Although not required per ML 05-50, it is a safety net for poor workmanship.)
  15. In B3. Inspection Fees - required for loans over $15000 but is very common for any loan.

    • Inspection Fee is at least one per contractor and the recommended amount per inspection is $100, but may vary. This is usually a final inspection only.
    • +Title Upgrade Fee is usually one only $75 - $100. This ensures that there aren't any liens from the contractors on the property.

  16. In B4. Mtg Payments Escrowed - Enter the amount of payments being escrowed.


  17. In B6. Architectural and Engineering Fees - Only applies to non-streamline 203k loans.
  18. In B7. Consultant Fees - Only applies to non-streamline 203k loans. Enter the contactor consultant fees for preparing the required architectural exhibits.
  19. In B8. Permits - enter the permit fees for changing the property, if not paid by the contractor.
  20. In B9. Other Fees - enter any other fees that pertain to the 203k loan and explain them in the Remarks section at the bottom.
  21. In B10. Sub-Total - The sub-total will automatically calculate. However, you will need to manually enter the sub-total into the Total Escrowed Funds field in the Remarks section at the bottom.


  22. Scroll to section C. Mortgage Calculation for Purchase Transactions.
  23. In C4. Base Mortgage Amount... - The base loan amount will calculate. Enter any adjustments, such as non-FHA allowable closing costs, if applicable. Enter any allowable HUD-owned property down payment.


  24. Section D. Mortgage Calculation for Refinance Transactions is only for refinances.
  25. In the F. Summary section - it will populate the up-front mortgage insurance premium. The supplemental origination fee is not included because it is dispersed at closing, not escrowed.

Some of the information from the 203k Worksheet does not automatically populate the loan application.

Transferring data from 203k Worksheet to the Loan Application

  1. Go to the Borrower Information screen.
  2. Enter the base loan amount that was calculated from section C, line 4. Base Mortgage Amount of the 203k Worksheet.


  3. Go to Loan Application pg. 4.
  4. Enter the total rehabilitation costs that was calculated on the 203k Worksheet, section B. line 10. Sub-Total (Total of B5 thru B9).


Notice to FHA Lenders

To obtain correct loan to values at the time of insuring for Refinances:
  1. Input the value from 203kWS line D2 onto the Conditional Commitment Form (92800.5b), “Est. Value of Property.”
  2. Input the value from 203kWS line D2 in FHAC, Appraised Value
  3. Input the amount from 203kWS line B14 in FHAC, Escrow Amount


The following link provides the most recent 203(k) and Streamlined K Maximum Mortgage Worksheet, HUD Form 92700 (203kWS): http://portal.hud.gov/hudportal/documents/huddoc?id=92700.pdf For additional information pertaining to the 203(k) loan program, please consult the following on-line reference at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kmenu

**For Refinance Loans

  1. Go to the Fees Worksheet and enter all the fees that are associated with the loan.
  2. From the menu bar, select Forms > Federal Housing Administration (FHA) > FHA 203K Worksheet (HUD-92700)

    Note: Check the 203k Streamline checkbox if it is a 203(k) streamline.

  3. Scroll to section A. Property Information.
  4. The Contract Sales Price should contain the existing mortgage amount on the subject property.
  5. Check the Existing Debt checkbox.
  6. Enter the "As is" Value.
  7. Estimate the "After Improved" Value. You can use the same as the loan amount for now but the actual after improved value will be provided in the appraisal report.
  8. Borrower Paid Closing Costs will populate automatically from the Fees Worksheet.
  9. Enter the Allowable Energy Improvements if applicable.


  10. Scroll to section B. Rehabilitation and Other Allowable Costs
  11. In B1. Total Cost of Repairs - enter the amount of repairs.
  12. In B2. Contingency Reserves - typically 10%. (Although not required per ML 05-50, it is a safety net for poor workmanship.)
  13. In B3. Inspection Fees - required for loans over $15000 but is very common for any loan.

    • Inspection Fee is at least one per contractor and the recommended amount per inspection is $100, but may vary. This is usually a final inspection only.
    • +Title Upgrade Fee is usually one only $75 - $100. This ensures that there aren't any liens from the contractors on the property.

  14. In B4. Mtg Payments Escrowed - Enter the amount of payments being escrowed.


  15. In B6. Architectural and Engineering Fees - Only applies to non-streamline 203k loans.
  16. In B7. Consultant Fees - Only applies to non-streamline 203k loans. Enter the contactor consultant fees for preparing the required architectural exhibits.
  17. In B8. Permits - enter the permit fees for changing the property, if not paid by the contractor.
  18. In B9. Other Fees - enter any other fees that pertain to the 203k loan and explain them in the Remarks section at the bottom.
  19. In B10. Sub-Total - The sub-total will automatically calculate. However, you will need to manually enter the sub-total into the Total Escrowed Funds field in the Remarks section at the bottom.


  20. Section C. Mortgage Calculation for Purchase Transactions is only for purchases.
  21. Scroll to section D. Mortgage Calculation for Refinance Transactions - The base loan amount will calculate on line 4. Base Mortgage Amount.
  22. Enter the MIP Refund in line 1. Sum of Existing Debt..., if applicable.
  23. In the F. Summary section - enter the up-front mortgage insurance factor. The supplemental origination fee is not included because it is dispersed at closing, not escrowed.

Some of the information from the 203k Worksheet does not automatically populate the loan application.

Transferring data from 203k Worksheet to the Loan Application

  1. Go to the Borrower Information screen.
  2. Enter the base loan amount that was calculated from the 203k Worksheet, section D, line 4. Base Mortgage Amount...


  3. Go to Loan Application pg. 4.
  4. Enter the total rehabilitation costs that was calculated on the 203k Worksheet, section B. line 10 Sub-Total (Total of B5 thru B9).
  5. If you entered an MIP Refund from step 22 above, click the CC Adjustments for FHA button and enter the MIP Refund amount.


Notice to FHA Lenders

To obtain correct loan to values at the time of insuring for Refinances:
  1. Input the value from 203kWS line D2 onto the Conditional Commitment Form (92800.5b), “Est. Value of Property.”
  2. Input the value from 203kWS line D2 in FHAC, Appraised Value
  3. Input the amount from 203kWS line B14 in FHAC, Escrow Amount


The following link provides the most recent 203(k) and Streamlined K Maximum Mortgage Worksheet, HUD Form 92700 (203kWS): http://portal.hud.gov/hudportal/documents/huddoc?id=92700.pdf For additional information pertaining to the 203(k) loan program, please consult the following on-line reference at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kmenu

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