There is not a limit on how much you can spend, however if total repairs/add-ons exceed $30,000 then you will have to do a full-blown 203k as opposed to the "streamline" version. A full blown 203k will have additional fees associated with it, and you'll be required to work with a repair consultant as well. So if you can keep everything under $30,000 it will be a much easier process. And also remember the home must still appraise so don't go too crazy :)
- Construction or rehabilitation of a detached garage or an
attached unit(s) to the existing dwelling (if allowed by the
local zoning ordinances).
- New cooking ranges, refrigerators and other appurtenances
It does not give a limit as to how much you can spend on appliances, they can not be used appliances and they have to meet the most modern energy usage guidelines.
It is my opinion that you do not need another program for buying appliances, you can do it all under the 203(K) loan.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
There is no real benefit here except that you are allowed slightly higher debt ratios. If you are thinking you get a lower rate and cost that is out of the question as that is not the purpose.
The EEM (Energy Efficient Mortgage) can be used individually or in conjunction with a FHA 203K. You'll need a HERS (Home Energy Rating) report that usually kills what you'll save via the EEM. However, if there scenarios where the EEM works well. Avoid rookies with these loans, use someone with experience.
If you need help with guidelines and questions about the 203k loan please go to http://www.203kloanillinois.com. There is a lot of good information there.
David P Cruickshank
Ardain Mortgage Corp.
Cell 517 861 7064