What a difference a
‘K’ makes? This
is about the ‘Renovation
Loan’ called the FHA 203K and how it
can be
used to purchase a home in
need of 'a little help’.
The 203K Loan is:
- Perfect for REO’s
and foreclosures.
- Used to purchase and close on a home in
‘as is’ condition. Usually getting a
better sales price.
- No repairs required prior to closing; no
appraisal issues. The house must be sound and is used for
minor repairs and cosmetic changes that you would like to do to the
property and don’t have the ready cash to do it.
-
There can be NO
mandatory repairs and is the buyers choice to update the
home. This program is a much better financial
move than using your credit cards to renovate your home
projects. So again the house must be structurally sound according
to FHA guidelines but can be best described as:
‘butt-ugly, grandma's 1950's house or cosmetically
challenged’ on the inside as far as decorating
details.
Rules
for this 203K Loan:
1.
Owner occupied only.
2.
FHA maximum loan limits in Cook, DeKalb, DuPage,
Kane, Lake, McHenry and Will Counties.
1 Unit =
$365,700
2 Unit =
$468,150
3 Unit =
$565,900
4 Unit =
$703,250
3.
Only 3.5% down payment required.
4.
Loan amount = Purchase Price + Rehab Amount x
96.5%
5.
Allowable Repairs are:
Roofs,
gutters,
downspouts
HVAC systems
Plumbing,
Electrical Systems
Existing
flooring
Minor
remodeling such as kitchens – no structural repairs
Interior and
Exterior Painting/Siding
Weatherization
including storm windows, doors, insulation, weather stripping, etc.
Appliances
– Free standing and built-ins allowed
Handicapped
accessibility
Lead based
paint abatement/stabilization
Repair,
replace
or add exterior patio or porch
Basement refinishing and
remodeling that does not require structural repairs
Basement
waterproofing
Window and door
replacement
Septic and
well
systems – repair or replace
Sound
like you might be interesting in doing something like this?
Have a property in mind? Please give me a call and
we can talk about the 'possibilities' and I can put you in contact with
a great lender that has your best interests in mind!
Lyn
Sims (847)230-7324 at RE/MAX Suburban
I proudly serve
and sell real estate in the Northwest
Suburbs of Chicago.
If you are
thinking about purchasing
or selling your home in the communities of Elk Grove Village,
Schaumburg, Hoffman Estates, Roselle, Palatine, Medinah,
Itasca, Bloomingdale, Carol Stream,
Bartlett, Hanover Park, Streamwood, Elgin, South Elgin, St. Charles and
more importantly, want to work with a local area expert, contact me
immediately.
All
data and information provided on this
blog is for informational purposes only.
Lyn Sims makes no representations as to accuracy,
completeness,
correctness, suitability or validity of any information on this site
and will
not be liable for any errors, omissions, or delays in information or
any
losses, injuries, or damages arising from it’s display or use.
Buyers Agent -
203K Rehab Loan ©2009 Lyn Sims -
RealEstateConsumerInfo.com and RealEstateBuyMe.com
;)
;)
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Lynn, excellent advice. I just sat down with 3 differnent banks and had them give me their take on this loan. It sure helped a lot!