THE BEAUTY OF RENOVATION LOANS
Allows you to combine the purchase of the home with the cost of repairs of the home
203(k) Standard:
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Renovation costs must be at least $5,000
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Must use a 203(k) consultant
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1-4 unit primary residences
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Manufactured Homes
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FHA approved Condos
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Site Condos
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Structural changes are allowed
203(k) Limited:
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The cost of work cannot exceed $35,000
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1-4 unit primary residences
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Manufactured Homes
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FHA approved Condos
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Site Condos
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Minor remodeling
EXAMPLES OF ELIGIBLE PROJECTS:
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Repair/Replacement of roofs, gutters, and downspouts
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Repair/Replacement/upgrade of existing HVAC systems
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Repair/Replacement/Upgrade of plumbing and electrical systems
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Repair/Replacement of flooring
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Minor remodeling, such as kitchens, which does not involve structural repairs
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Painting, both exterior and interior
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Weatherization, including storm windows and doors, insulation, weather stripping, etc.
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Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers, and microwave ovens
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Accessibility improvements for persons with disabilities
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Lead-based paint stabilization or abatement of lead-based paint hazards
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Repair/replace/add exterior decks, patios, porches
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Basement finishing and remodeling, which does not involve structural repairs
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Basement waterproofing
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Window and door replacements and exterior wall re-siding
Fannie Mae HomeStyle Renovation Loans:
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620 credit score
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1-4 unit primary residence
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1-unit second homes
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1-unit investment homes
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Multi-wide Manufactured homes
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PUDs
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Fannie Mae-approved condos
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95% LTV on a 1-unit principal residence
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Renovations and Repairs up to $200,000
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75% LTV on a 1-unit investment property
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No minimum dollar amount is required for repairs