FHA 203(k) Limited
The FHA 203(k) limited program is designed for non-structural repairs up to a maximum of $35,000 in total renovation costs—this includes the contingency reserve and any additional fees. This is an excellent loan for your clients that have a home with a significant renovation that restricts the ability to move-in immediately. With the right expert assistance and loan, the property can be move-in ready after renovations. These programs are available for Purchase and Refinance.
- $5,000–$35,000 in total renovation costs
- Ideal for minor renovations including appliances and cosmetic repairs
Types of repair
- Eliminating health and safety hazards to meet HUD’s minimum property requirements (MPRs)
- Repair/replacement of roof including siding gutters and downspouts
- HVAC systems, plumbing and electrical systems
- Exterior decks, patios, porches provided dollar for dollar increase in As-Is Property Value
- Minor remodeling not involving structural repairs (i.e. kitchen)
- Purchase/installation of appliances
- Accessibility improvements for persons with disabilities
- Lead based stabilization or abatement of lead based paint hazards for property built prior to 1978
- HVAC systems, plumbing and electrical systems
- Septic system and/or well repair or replacement
- Pool repairs
- Installation/repair of fences, walkways and driveways
FHA 203(k) Standard
The standard program is for all projects > $35,000 or homes requiring significant renovations, such as structural changes, room additions, or improvements that make the home uninhabitable during construction.
- Major renovations
- > $35,000 in total renovation costs
- May include structural repairs
Types of repair
- Major remodeling or structural repairs/alterations
- Eliminating health and safety hazards to meet HUD’s minimum property requirements (MPRs)
- Septic system and/or well installation, repair or replacement
- Connection to public water and/or sewer
- HVAC systems, plumbing and electrical systems
- Improved functions and modernization
- Windstorm shelter
- Lead based stabilization or abatement of lead based paint hazards for property built prior to 1978
- Roof including siding gutters and downspouts
- Installation/repair of fences, walkways and driveways
- Accessibility improvements for persons with disabilities
- Repairing or removing an in-ground swimming pool installation of built-in appliances
- Site improvements such as installation/repair exterior decks, patios, porches provided dollar for dollar increase in As-Is Property Value
HomeStyle® Renovation
There are two types of HomeStyle® transactions available:
- Up to $50,000 in total renovation costs including contingency reserve and any additional fees – Designed for non-structural repairs and allows for two draws
- Projects >$50,000 in total renovation cost including contingency reserve and any other expenses – Homes requiring any significant renovations, such as structural changes/room additions and allows up to five draws
- Up to $50,000 in total renovation costs
- Flexible for minor or major renovations
- Perfect for good to great credit Borrowers
Property Eligibility
- One- to four-unit principal residences, one-unit second homes, or one-unit investment properties, including units in condos and PUDs
Program Eligibility
- Conforming and High Balance up to FNMA loan limits
- Fixed Rate Terms: 15, 20, 25, and 30 Year Fixed Rate Terms
- ARM Terms: 5/1, 7/1, and 10/1
