FHA 203K Re-hab Loan Repair Guide; Qualifying and Non-Qualifying Repairs

Real Estate Agent with Keller Williams Premier

Here is a quick guide I received from my loan officer regarding what you can and can not repair when using the FHA 203K rehab loan.  Remember this is just a guide and not an everything list.  Also remember the contractor doing the work needs to be approved by FHA 203K.

 Borrower(s) Shopping Guide to Qualified Repairs Allowed with 3.5% Down

Minimum Down 3.5% of Total Project Cost (Funds can be own or gifted) 

Examples of repairs that would qualify for the program:

Repair/ Replacement of roof, gutters, downspouts with permit

Heating/air conditioning- possible permit

Upgrade/Repair plumbing, and electrical systems with permits

Septic system and/or well repair or replacement with permits

Replacement of flooring, windows, doors, exterior wall re-siding

Minor remodeling such as kitchen or bath with no structural repairs, permit maybe required

Painting of exterior/interior

Purchase and installation of appliances

Handicapped accessibility improvements

Weatherization, painting, basement waterproofing

Repair/replace/add deck, patio or porch with permit

Minor remodels that do not involve structural repairs

Basement finishing and remodeling, which does not involve structural repairs with a permit

Pool repair maximum of  $1,500 in repairs allowed

Examples of repairs that do not qualify for the program:

Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall

New construction (including room additions)

Repair of structural damage

Repairs requiring detailed drawings or architectural exhibits

Landscaping or similar site amenity improvements

Any repair or improvement requiring a work schedule longer than six (6) months; or rrehabilitation activities that require more than two (2) payments per specialized contractor

NO to a garage, unless you are repairing an existing one. Cannot build a garage


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Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Great tips on the FHA Streamline 203K.  The FHA Consultant 203K program will allow most of the repairs/improvements that the Streamline version will not.

May 23, 2010 05:41 AM #1
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