| Construction to Permanent Loans provides the student with the criteria required by Fannie Mae and Freddie Mac for underwriting construction to permanent mortgages. General construction terms, acquisition costs and change orders are also covered in this course.
By the end of this course, students will be able to:
- Recognize the basic components of the Const/Perm financing process
- Apply Agency underwriting guidelines for Const/Perm financing
- Calculate acquisition costs
- Reconcile change orders
 CampusMBA is
offering the CRU designation through a partnership with Genworth Financial.
Genworth's underwriting courses and content have been implemented into the program
curriculum to enhance CampusMBA's current offerings to the real estate finance industry.
Course Outline:
Introduction: The Construction Process at a Glance
- The Construction Process (Step-by-Step Look at the Contruction Process, The Construction Timeline)
- Agency Financing Options
Fannie Mae Construction/Perm Guidelines
- Transaction Types (One-Time Close Transaction, Two-Time Close Transaction, Land Installment Contracts and Contract for Deed, Calculating Acquisition Costs and Loan-to-Value (LTV))
- Underwriting Guidelines (Equity Requirements, Escrow Holdbacks, Test Your Knowledge, Miscellaneous Construction/Perm Underwriting Requirements)
- Data Entry Requirements (Purpose of Loan, Details of Transaction, Documents Reviewed in File, Assets)
- Case Study One
- Case Study Two
Freddie Mac Construction/Perm Guidelines
- Transaction Types (Newly Built, Construction Conversion, Renovation)
- Underwriting Guidelines (Equity Requirements, Escrow Holdbacks, Test Your Knowledge, Miscellaneous Construction/Perm Underwriting Requirements)
- Data Entry Requirements (Loan File Setup, Loan Application Data, Refinance)
- Case Study One
- Case Study Two
Calculating Acquisition Costs
- Qualifying Acquisition Cost Items (Overview, Test Your Knowledge 1, Test Your Knowledge 2, Total Acquisition Costs)
- Construction Contract Change Orders (Example 1, Example 2, Example 3, Test Your Knowledge)
Course Credit:
Completion of this course earns five points toward MBA's Certified Mortgage Banker (CMB), or
Certified Mortgage Technologist (CMT) designations. This course also earns five points towards
MBA's Residential Underwriter Professional Certificate (CRU Level II).
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