QUESTION: What repairs are eligible under this Fha203K Program?
Answer: The following repairs are eligible under this FHA Program:
1. Structural Alterations and reconstruction
2. Modernizing and improving the home’s function
3. Eliminating health & safety hazards
4. Changes that improve appearance
5. Reconditioning or replacing plumbing, installing a well and/or septic system
6. Adding or replacing Roofing, Gutters, and downspouts
7. Adding or replacing floors and /or floor treatments
8. Major landscaping and site improvements
9. Making energy conservation improvements
QUESTION: Is this Program for Purchases only?
Answer: No, the 203k may be used for a purchase or a refinance. It may also be used to purchase a REO (Real Estate Owned) property.
QUESTION: Who is Responsible for repairs?
Answer: The homebuyer/owner pays for the repairs from Loan proceeds. Repairs may begin AFTER the loan is closed and NO, a general contractor is not required.
QUESTION: What repairs are not allowable?
Answer: Repairs that are less than $5000 do not qualify for the 203K. If repairs are less than this amount you may apply for a 203K STREAMLINE Version of this Program. The repairs can be made in up to TWO payments to the contractor or homeowner.
QUESTION: How much down payment do I need?
ANSWER: As with most Government mortgage Loan Programs, the minimum investment is 3.5%. Most Construction Fees (i.e. loan discount points paid, title update costs, permit costs) may be financed in the loan.
If you need more information about the this type of financing, consult an Government educated qualified Mortgage lender or Broker of your choice. Look also at the listing for Streamline version of 203K button for more information.
FHA 203K Loans for Foreclosures
Federal Housing Admin Mortgage Insurance Changes ( Free VIDEO)