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