I am happy to spread the news that we are up and running with the 203K FHA loan! This is a wonderful product that can be a huge tool in our local Michigan market with so many foreclosures. Features of the program include:
- Up to $35,000 in repair escrow available!
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No minimum repair amount (unlike some 203Ks that require $5,000 of rehab.)
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1-4 unit owner occupied homes eligible
- Condos eligible
- Can be combined with HUD REO properties, other REO properties, or properties that are not foreclosures!
- We use post-rehab. appraisals, so no equity is needed!
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Up to 110% post rehab. value!
Types of improvements include:
- Roofs, gutters
- Heating and cooling systems
- Plumbing
- Electrical
- Minor remodeling such as kitchens, baths
- Painting, exterior and interior
- Weatherization such as windows, doors, insulation, etc.
- Appliances
- Decks, patios, porches
- Basement finishing and remodeling
- Waterproofing and mold removal
- Septic and well work
Excludes:
- Structural repairs
- Moving of walls
- Room additions
- Landscaping
- Pool improvements
- Work taking longer than 3 months
- Repairs requiring more than two payments to contractor
Who can do the work:
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A licensed contractor or:
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An owner who can demonstrate ability to do work themselves (i.e.- a plumber who wants to do his own plumbing)
For more information, give me a call at (616) 719-4513!
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Great blog post and a great program. This program is not done a lot in this area so not a lot of resources here.
Curious about the repairs, do they have to be specifically spelled out in the offers stipulations? Does the offer have to be contingent upon the 110% post-rehab value? Is that understood, or does that need to be so stipulated in the offer as well?