Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
What is a 203K Loan

What is a 203K Loan

Ratings: (0)|Views: 104|Likes:
Published by Beth Boerman Repta

More info:

Published by: Beth Boerman Repta on Mar 17, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

03/11/2014

pdf

text

original

 
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).
 
 
Replacement or reconditioning of any systems (i.e. plumbing,heating, electrical etc).
 
Connection to public water or sewer.
 
Energy improvements.
 
Major landscape work (i.e. patios that improve the value equal to thedollar spent).
 
Handicap accessibility.
 
Roofing, gutters, downspouts.
 
New appliances (used are not allowed).
 
Construction or rehab of detached structure.
What is not allowed?
 
Homes that have never been completed
 
Cooperative units
 
Non-owner occupied
 
Non-profit companies
 
BBQ Pits
 
Bathhouses
 
Dumbwaiters
 
Exterior hot tubs
 
Saunas, spas and whirlpool baths
 
Outdoor fireplaces or hearths
 
Swimming pools
 
TV antennas and satellite dishes
 
Tennis courts
 
Additions/repairs for commercial use.
What it the time frame?
 
Typical closing time is 45-60 days from contract.
 
Work must start within 30 days of closing.
 
Project to be completed within 6 months of closing.
Further Details…
 
 
Contractor Information required-3 weeks prior to closing.
 
Hazard Insurance- required 2 weeks prior to closing if PITI is notfinanced.
 
Hazard Insurance-Must be sent with submission package if PITI isbeing financed.
 
Renovation Review-48 hours after
final approval.
 
Fee Sheets-72 hours prior to closing in order to meet the timeframes for renovation review

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->