FHA STANDARD 203K
The Renovation Mortgage Process Revealed- 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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