Don't Pass it Up - Fix it Up!
Perhaps your clients have found the home of their dreams in the perfect location. But it needs work – lots of it! With an FHA 203(k) Standard loan, they can combine both the acquisition (or refinance) and major post-closing renovations needed to turn that “less than perfect” home into the home they really want with a single mortgage loan.
203(k) Standard loans have a minimum repair amount of $5,000; the maximum is contingent on the county limit for the home. High-balance homes are included in the program.
What can be done with a 2013(k) Standard loan? A lot, including:
• Structural changes
• New additions
• Increasing the building footprint
• Swimming pool repair
• Retrofitting a home for handicap accessibility and much more.
Potential buyers can borrow up to 110% of the after-renovation value (110% LTV), with a 3.5% down payment for 1-4 unit properties – and unlike many loans, the down payment can be gifted. Buyers also have the ability to roll in most closing costs.
Be aware, though, that because of the scope and cost of the approved changes, a 203(k) Standard loan requires the involvement of an FHA HUD consultant. Work must start within 30 days of closing and be completed within 180 days of closing. A maximum of 5 contractor draws are permitted, and specialized contractor(s) can provide technical items and service.
An FHA 203k Standard loan from Home Point Financial Renovation Loans can fund both the purchase and the renovation necessary for your clients to make a home their own.
Contact us today to learn more!