The FHA Standard 203(k) renovation loan, allows buyers the ability to finance major or minor upgrades on a home without having to get the work done before closing. Borrowers cannot purchase a home needing major repairs (ex. Foundation repairs, any minimal property requirements, or large projects over 35k), without a renovation loan to roll these costs in.
WHAT IS THE STANDARD 203(k) PROGRAM?
The Standard 203(k) program offers everything that can be completed in the Limited 203(k) program, but even more.
The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5,000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place.
The types of improvements that borrowers may make using Section 203(k) financing include:
Another added benefit of the Standard 203(k) loan, is in the event that the home will be uninhabitable during renovation, you can finance up to 6 mortgage payments into the loan, while waiting for the home to be in a condition that is it inhabitable again. (restrictions to apply).
This program can also be used with the purchase of a HUD home, and in coordination with the Good Neighbor Next Door program.
WHAT IS THE STANDARD 203(k) PROGRAM?
The Standard 203(k) program offers everything that can be completed in the Limited 203(k) program, but even more.
The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5,000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place.
The types of improvements that borrowers may make using Section 203(k) financing include:
- Structural alterations and reconstruction
- Modernization and improvements to the home's function
- Elimination of health and safety hazards
- Repairs to pools that are in need of health and safety hazards
- Changes that improve appearance and eliminate obsolescence
- Reconditioning or replacing plumbing; installing a well and/or septic system
- Adding or replacing roofing, gutters, and downspouts
- Adding or replacing floors and/or floor treatments
- Major landscape work and site improvements
- Enhancing accessibility for a disabled person
- Making energy conservation improvements
- Conversion of a property of any size to a one-to-four unit structure
Another added benefit of the Standard 203(k) loan, is in the event that the home will be uninhabitable during renovation, you can finance up to 6 mortgage payments into the loan, while waiting for the home to be in a condition that is it inhabitable again. (restrictions to apply).
This program can also be used with the purchase of a HUD home, and in coordination with the Good Neighbor Next Door program.
