Lately We’ve been asked, “what are some allowable improvements when we use the FHA 203k rehab mortgage”? We’d like to give you some basic information that you can use to help understand how the FHA 203k renovation mortgage works and what is eligible.
These are prime times for the FHA 203k program more than ever. There is a large inventory of homes on the market that fit the requirements for participation in the FHA 203k and it can be a simple process with the right professionals on board.
Contractors can offer their clients a new way to finance their remodeling projects with the FHA 203K Loan.
The extent of the rehabilitation under the FHA 203k may range from relatively minor (minimum of $5,000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. The types of improvements that borrowers may make using FHA 203k financing include:
Structural alterations and reconstructionPutting on a new roof
Repair or replacing well and/or septic system
Roofing, siding and gutters
Landscape work and site improvements
Enhancing accessibility for a disabled person
Kitchen and Bathroom renovations
Replace/Upgrade existing HVAC systems
Replacement windows and doors
Finish Basements and Waterproofing
Plumbing and Electrical upgrade
Appliances, Floor and Wall covering
Items that are not eligible for improvements include; swimming pools, tennis courts, basketball courts, hot tubs; simply, no luxury items
A full FHA 203k allows for complete renovations and rehabs of properties. Everything allowed in a streamline FHA 203k is eligible for a full FHA 203k. A full FHA 203k is used for all repairs and renovations over 35,000.
The Renovation Lending Division of AnnieMac Home Mortgage is a specialized group of professionals focused on the need to help rebuild and renovate American homes. Americans currently have a great need to access affordable loans to simultaneously finance and renovate their homes.