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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