Check out my website and you can get more information on how the program works and also see some before and after pictures of my clients homes. You can call or email me anytime and I can talk to you one on one about it and answer any questions you have. You can also have your agent call or email me and I'll help both of you make it a smooth transaction. Also, I'm only about an hour away so I might be able to connect you with my 203k contractor to handle all the work for you.
Most local banks and credit unions do not do 203k loans. Give Ray Roeske a call at 571-238-6468 or email firstname.lastname@example.org. He is one of Wells Fargo's leading 203k expert loan officers and he is right here in Virginia. The loan officer can make or break your entire deal - they have to know what they are doing with 203ks - don't use a loan officer that has never done one before, especially if there is termite damage.
Good luck and let me know if you have any questions.
HUD's 203(k) program can help you overcome this obstacle by enabling you to borrow funds for the purchase or refinance of a property plus the cost of making the repairs and improvements in one mortgage. The FHA-insured 203(k) loan is provided through approved lenders like us and is available to owners who will occupy the home themselves.
Down payment, credit qualification, loan limits and other requirements are the same as standard FHA loans. Additional guidelines are set forth specific to 203k loans to provide for renovation of the home.
FHA 203k loans are available in two types:
1. The Standard 203k is intended for more complicated projects that involve structural changes, such as room additions, exterior grading and landscaping, or renovation that would prohibit you from occupying the residence. A Standard 203k is also used if your project requires engineering or architectural drawings and inspections.
2. The Streamlined 203k is designed for less extensive improvements and for projects that will not exceed a total of $35,000 in renovation and related expenses. This version does not require the use of a consultant, architect, and engineer or as many inspections as the Standard 203k. As a result, when applicable, the Streamlined 203k generally becomes the simpler, less costly option.
What improvements are eligible under the Streamlined 203k?
The Streamlined 203k program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. This program allows discretionary improvements and/or repairs shown below:
â€¢ Repair/Replacement of roofs, gutters and downspouts
â€¢ Repair/Replacement/upgrade of existing HVAC systems
â€¢ Repair/Replacement/upgrade of plumbing and electrical systems
â€¢ Repair/Replacement of flooring
â€¢ Minor remodeling, such as kitchens, which does not involve structural repairs
â€¢ Painting, both exterior and interior
â€¢ Weatherization, including storm windows and doors, insulation, weather stripping, etc.
â€¢ Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
â€¢ Accessibility improvements for persons with disabilities
â€¢ Lead-based paint stabilization or abatement of lead-based paint hazards
â€¢ Repair/replace/add exterior decks, patios, porches
â€¢ Basement finishing and remodeling, which does not involve structural repairs
â€¢ Basement waterproofing
â€¢ Window and door replacements and exterior wall re-siding
â€¢ Septic system and/or well repair or replacement
What items are ineligible for the Streamlined 203k?
Properties that require the following work items are not eligible for financing under the Streamlined 203k:
â€¢ Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;
â€¢ New construction (including room additions);
â€¢ Repair of structural damage;
â€¢ Repairs requiring detailed drawings or architectural exhibits;
â€¢ Landscaping or similar site amenity improvements;
â€¢ Any repair or improvement requiring a work schedule longer than six (6) months; or
â€¢ Rehabilitation activities that require more than two (2) payments per specialized contractor.
This is definitely a great program for situations like yours and if you would like more details on getting pre-approved please contact me at your convenience. Thank you and best wishes.
Elliott R. Oliva
Stearns Lending, Inc.
Otherwise, many banks offer renovation loans. If you have cash available to you and are not restricted to the 3.5% down then you are not restricted to a 203K.