contingency reserve: FHA 203K...The Contingency Reserve
- 01/08/12 10:01 AM
What's The Contingency Reserve? The Contingency Reserve is something that needs to be addressed because it's an extremely important part of the FHA 203k loan. The Contingency Reserve is there for cost overruns- it is a component that is put in place to protect the home buyer or home refinancer in case of additional costs or expenses that may arise as a result of the rehab. How Much? The Contingency Reserve can be anywhere from 10-20% of the rehabilitation costs. This rehabilitation number is set aside in case we open up the walls and there are broken pipes, missing, etc- one never … (3 comments)
My blog is here to provide information regarding FHA 203K loans and conventional renovation loans for both purchase and refinance. Updates, tips and advice regarding these loans and the industry is what you will find on this blog!
What's The Contingency Reserve? The Contingency Reserve is something that needs to be addressed because it's an extremely important part of the FHA 203k loan. The Contingency Reserve is there for cost overruns- it is a component that is put in place to protect the home buyer or home refinancer in case of additional costs or expenses that may arise as a result of the rehab. How Much? The Contingency Reserve can be anywhere from 10-20% of the rehabilitation costs. This rehabilitation number is set aside in case we open up the walls and there are broken pipes, missing, etc- one never … (3 comments)
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