Increased 203k Loan Limits for 2024
This is for the Limited 203k, which allows self-help and up to 5 subcontractors. If the borrower wants or needs no structural work on the project, they are the contractor.
You can update the kitchen and bathrooms, but you can't remove a bearing wall to "open up the floor plan."
Instead of the old $35,000 limit, it is now $75,000, but it still has to cover the contingency reserve and costs and fees of the loan (typically about $800.00). Each lender may be different. The lenders don't have to require a contingency reserve, it is up to them.
I still think a consultant should be the eyes and ears on the ground at these projects. Whenever a Limited 203k project exceeds $15,000, it is supposed to have an interim inspection. Many times, this is done by the lender or loan officer who made the loan. @everyone
You now have six months to complete the work, whereas it used to take sixty days or it was a Standard 203k. The Standard 203k now has a year to complete the work.
This all took place while you were sleeping on November 4th, 2024.
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