What is a 203K Loan?
A 203K loan is FHA’s primary program for the rehabilitation and repair of single family properties. The borrower can get just one mortgage for theproperty and the rehabilitation/repair.
What properties are eligible?
1-4 Family completed for at least 1 year
Conversion of multi-unit dwelling decreasing or increasing thenumber of units.
A complete rehab as long as the entire foundation system remains inplace.
Condos-no structural work-no more than 4 units per building-Must beFHA approved.
No mixed-use properties allowed.
Owner occupied only.
What are the stipulations?
Minimum $5000 of repairs.
Maximum is FHA loan limit for price of home plusimprovements. (this limit varies depending on thecounty of the home)
Requires a consultant - we provide for you!
Multiple inspections - we provide for you!
Contingency reserve required.
Work to be performed by approved contractor of finance company.
No up-front money is given to General Contractor.
Borrower can not be General Contractor.
Borrower can not get paid for any work done.
What repairs/renovations are acceptable for this loan?
Additions to current structure.
Paint, carpet, tile etc.
Finishing of a basement.
Weatherization including storm windows, doors etc.
Changes for improved functions and modernization (such asremodeling of kitchens and bathrooms).
Elimination of health and safety hazards such as lead paint, mold etc.
Changes for aesthetic appeal and elimination of obsolescence (newexterior siding).