Is there a minimum amount of repairs required for an FHA 203k?

Home Inspector with, covering the USA S0289

Is there a minimum amount of repairs required for an FHA 203k?

The FHA standard or full 203k has a mandatory requirement of a minimum of what I call "must do work" or work that would qualify the structure (1-4 units) for the program. Those, for the most part, are health and safety, or "of necessity" items that would allow the structure a likely chance, with typical home owner maintenance, of lasting as long as the 30-year mortgage that is being placed on the home.

Simple things like front porch posts that hold up the front porch roof structure are rotted out at the bottom would be "of necessity" or "structural repairs". Termite work is typically an easy way to reach the $5,000 threshold. It doesn't take much to get to that $5,000.

In addition to this if your home is pristine and you merely want to add a detached two-car garage that would also qualify. Any room addition you make would be counted as covering the $5,000 threshold. Therefore if you have a home your buyer wants but it is just too small for their needs the FHA 203k loan guarantee program may be just what you need to close the sale and give the buyer the home they really want and need.

The limited 203k has no minimum threshold however most lenders have placed a $2,000 minimum on the program as a supplemental requirement. If your appraisal comes in low you can gain a 10% advantage on the appraised value by using the Limited 203k.

The FHA 203k program and the HomeStyle® Renovation Mortgage programs are both being used in Marin County CA. The HomeStyle® Renovation Mortgage is a bit more popular in this area as the buyers a bit better off than other areas of the state and have that magic 20% down payment. This keeps you out of paying a MIP (Mortgage Insurance Premium). 

We have competed renovation projects in Woodacre, Fairfax, San Rafael, Oak Knoll, Terra Linda, Belevedre, Sausalito, Corte Madera, Ross, Languanitas, Bel Marin Keys, and Kentfield. 







Posted by

Mike Young, 203k Team Leader    Mike ready for your 203k order

To learn more about the FHA 203k loan program go to www.203kOnLine.comWhat is your fee? 

Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality 203k software for consultants to speed up the underwriting process..

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Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Mike, the 203k is a great option for many buyers in the market today.  More agents need to know about this program. We will plan a lunch and learn for our next meet-up. 

Feb 26, 2017 04:05 PM #1
Chuck Mixon
The Keyes Company - Cutler Bay, FL
Cutler Bay Specialist, GRI, CDPE, BPOR

Was not aware that any repair that benefit the 30 year Mortgage  would be covered. Great information.

Feb 26, 2017 04:20 PM #2
Noel Mayer

Mike, I stopped by thank you for sharing the information.

Mar 03, 2017 01:31 PM #3
Fred Sweezer Sr.
Hud Certified 203K Consultant - Long Beach, CA
Certified Home Inspector

Mike thanks for your post even thou the name have changed to "streamline" the minimum is the same!

Nov 18, 2017 11:16 AM #4
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Mike Young

FHA 203k Consultant 916-758-1809
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