Tuesday, January 1, 2008

FHA 203K Streamline - Rehab Loan

You can borrow up to 110% of the sales price from $5,000 up to $35,000 extra to rehab your home.

Need 1 bid for work to be completed from a licensed contractor.

We do one appraisal with 2 values - as is and subject to completion. Completed value must be supported.

Two draws - 1. at closing for materials - cannot exceed 50% of the estimated cost
2. Labor when done

6 months to complete the work

Borrower needs 3% of sales price - can use Nehemiah grant program.

Rate is about .25% higher when doing 203K

Work to be performed must not cause the mortgagor to be displaced from the property for more than 30 days during the time of the rehabilitation work is being conducted.

Cannot increase living space like finishing basement or putting on an addition.

The following repairs can be financed with this program::

  • Repair/Replacement of roofs, gutters and downspouts
  • Repair/Replacement/upgrade of existing HVAC systems
  • Repair/Replacement/upgrade of plumbing and electrical systems
    Repair/Replacement of existing flooring
  • Minor remodeling, such as kitchens, which does not involve structural repairs
  • Exterior and interior painting
  • Weatherization: including storm windows and doors, insulation weather stripping, etc.
  • Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwaves.
  • Improvements for accessibility for persons with disabilities.
  • Lead based paint stabilization or abatement of lead based paint hazards.
  • Repair, replacement or the addition of exterior decks, patios and porches.
  • Basement remodeling which does not involve sculptural repairs.
  • Basement waterproofing.
  • Window and door replacement and exterior siding replacement.
  • Well or septic system repair or replacement

Just some usefully information from your friendly neighborhood Realtor

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