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Product Overview: Standard (Full) FHA 203(k)

Jan 31, 2018 | Broker, Products

Are your clients planning for a large-scale project like major structural alterations, conversion or repairs to their swimming pool? A Standard (Full) FHA 203(k) loan can help get your clients one step closer to breaking! 

Standard 203(k) loans are intended for extensive rehabilitation and/or improvements that are completed within six months. Types of improvements that can be made are discretionary; however, luxury items that are not part of the property are excluded. 

Some types of improvements that are allowed under this product: 

     -  Repair/replacement of roofs, gutters and downspouts 

     -  Repair/replacement of flooring 

     -  Painting, both exterior and interior 

     -  Weatherization, including storm windows and doors, insulation, 
weather stripping, etc. 

     -  Kitchen and bathroom remodeling 

     -  And more

Overall Program Highlights:

     -  Requires an FHA HUD consultant

     -  Minimum cost of repairs is $5,000 with no maximum

     -  Contingency reserve is approximately 10-20%

     -  Work must start within 30 days of closing and be completed within 180 days of closing

     -  Maximum 5 draws permitted

     -  Additional specialized contractor(s) allowed for technical items

     -  Finance up to 6 months PITI if home deemed uninhabitable

     -  Total of 5 draws are available

     -  Maximum of five inspections and title updates are required

     -  One general contractor allowed

Make your clients next home improvement project a success with help from a lender you can trust. We’ll be with you every step of the way!

To get started, contact your Home Point Account Executive today!