HUD 203(k) Program
Some of the best homes are bank-owned properties that need repairs. The housing and Urban Development’s (HUD) 203(k) renovation loan program allows home buyers to save money by including rehabilitation construction costs in their standard FHA home loan.
THE HUD 203(K) CONSULTANT
A HUD 203(k) Consultant is required on Standard 203(k) loans. The HUD 203(k) Consultant assists the home buyer by identifying items in need of repair, such as the water heater, roof, etc. We help get together the buyers “wish list” for renovations, such as new carpet, countertops, etc. Assisting buyers in retrieving contractor bids. Completing draw and final inspections to ensure that the contractor is completing the work as requested..
THE HUD 203(k) RENOVATION LOAN PROGRAM
The HUD 203(k) renovation loan program provides funds for both the purchase and renovation of a home with one mortgage loan. Once the purchase of the home is closed, renovation funds are held in escrow to pay for pre-determined renovation work done by approved renovation contractors. The amount you can borrow is based on the appraised value after remodeling, so you can get the money you need to fix it up.
STANDARD AND STREAMLINED 203(K) LOANS
HUD 203(k) loans are available in two types: Standard and Streamlined.
The Standard 203(k) loan is intended for projects over $35,000. Projects that may require structural changes, design drawings, inspections or involves engineering.
The Streamlined 203(k) loan is intended for less extensive improvements for projects that will not exceed $35,000 in renovation and related expenses.
Please feel free to call with any questions.
Michael B. Saari
Oakland Home Inspections