In the 203K FHA Loan, what types of improvements can I make?
- Repair/replace roofs, gutters and downspouts.
- Repair/replace HVAC systems.
- Repair/replace plumbing and electrical systems.
- Repair/replace flooring.
- Minor remodeling such as Kitchens and Baths
- Painting, both exterior and interior
- Purchase and Installation of Appliances
- Lead-based Paint Abatement
- Repair/replace decks, patios, porches
- Basement remodeling
- Basement waterproofing
- Window and door replacement
- Septic System and or Well Repair
All these things can all be included in the 203K FHA Rehab Loan. All repairs and work must be done by a certified contractor on HUD's approved list. They are all places that you know and deal with on a regular basis including Lowes and Home Depot as examples.
The loan is used to bring the home up to a suitable condition without going overboard. There are certain restrictions as to what can be done. A good example of this would be a granite counter in your kitchen. Will it effectively boost the value of the home OR is the cost too exorbitant to be recouped for the neighborhood? Each situation & home is going to be different.
It takes work and a lot of patience for this type of undertaking and loan. It can be a worthwhile effort for the right buyer with the right situation.
Thinking of tackling a fixer upper? I work with many great loan officers that will be able to help you in lots of situations & make sure you are the top priority in the transaction.