Remodel & Renovate in 32256>Question Details

Anson Bowden, Home Buyer in 32246

Bank of America, 203K Questions

Asked by Anson Bowden, 32246 Mon Oct 19, 2009

Are receipts required from the contractor when providing draw requests? Also, has anybody had any luck obtaining contingency funds through change orders?

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Is there a reason that these funds are not available once the project is final? My loan officer is telling me that the contingency reserve could be 10, 15, or even 20% of the total renovation cost. I'm trying to keep the renovation costs as low as possible in order to keep my mortgage payment low. It would be great to be able to use these funds. I guess I could always leave some "unforeseen items" out of the cost estimate.
0 votes Thank Flag Link Mon Oct 19, 2009
Below is the contingency guideline for the 203k Streamline loans in general:

Streamline 203K- Funds held back in contingency reserve must be used solely to pay for the proposed repairs or improvements and any unforeseen items related to these repair items. Any unspent funds remaining after the final work item payment(s) is made, must be applied to the mortgage principal.

Customers cannot just add items or upgrades such as....hard wood floors, appliances, or material upgrades.
0 votes Thank Flag Link Mon Oct 19, 2009
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