FHA STANDARD 203K

The Renovation Mortgage Process Revealed

GENERAL PROGRAM GUIDELINES

  • Both Purchase & Refinance Allowed
  • Refinances require 2 appraisals (As Is & After Improved Value)
  • This loan allows a customer to finance the purchase price or the existing balance and the cost of improvements into the loan amount.
  • Loan amount is determined by using the after improved value of the property.

  • Can lend up to 110% of after improved value up to FHA allowed loan limits (Minimum required down payment 3.5%)
  • One-time close fully amortized loan program.
  • All Renovations are completed after closing by buyer/homeowner selected Contractor.
  • Renovation funds are held in a Fully Funded Interest Bearing Escrow Account and disbursed as work is completed

  • Completed work & Inspections required prior to draw payments to Contractor (Maximum 5 Draws)
  • 1-4 units and mixed use properties, Owner occupied only.
  • Buyer/homeowner desired repairs allowed; Livability, Health, Safety, and Structural repairs required (Luxury items are allowed)
  • Minimum 10-20% contingency required for additional health and safety issues

  • $5,000 minimum renovation budget required
  • HUD/203k Consultant Inspector required
  • Work must begin within 30 days of closing and must typically be completed within 6-9 months depending on amount of budget
  • All properties must be at least 1 year old and have been completed at one time
  • Up to 6 months payments may be financed in the loan

General Program Guidelines

FHA Limited 203k

  • Both Purchase & Refinance Allowed
  • Refinances require 2 appraisals (As Is & After Improved Value)

FHA Standard 203k

  • Both Purchase & Refinance Allowed
  • Refinances require 2 appraisals (As Is & After Improved Value)

Fannie Mae HomeStyle

  • Can lend up to 95% of after improved value up to Conforming loan limits
  • 1-4 units properties allowed

THE VA RENOVATION LOAN

  • Newest Renovation Loan Program in the Market
  • Purchase & Refinance allowed

JUMBO RENOVATION

  • Available programs in this category would be specific to properties that require loan amounts over $424,100.00 as of 2017

Our Motto is The Renovation Mortgage Process Revealed

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