Tired of hearing no you can’t buy the house you just fell in love with, it’s not FHA approved?
Our CASA 203ks loan with $5,000 in down payment assistance may be the answer. We can escrow up to $12,000 in required repair. This program is perfect for neglected homes with deferred maintenance.Â Gain an instant increase in value from the start!
All FHA loans have a minimum down payment requirement of 3.5%. It is an easy calculation when you are considering a straight purchase, but when you are doing a 203ks, it is 3.5% of the total acquisition (purchase price) plus renovation cost.
For a 203ks, a HUD approved cost consultant must be involved for several reasons. They ensure that after renovation, the home will meet the minimum FHA standards. They will verify that you are hiring competent contractors and the contractors are doing renovation according to applicable codes. Finally it’s an effort to reduce fraud. FHA may be insuring loans for people who are claiming they will do renovations to a property and the home may not need the repairs and/or the renovation funds may not be spent as the lender and FHA anticipate.
As soon as you identify a property you’d like to make an offer on, talk to the contractors you plan to use and start getting proposals. We also will need to acquire copies of their contractor license, resume, and a certificate of liability insurance, so ensure all contractor’s you are working with are properly licensed and insured BEFORE you spend time with them getting estimates.
Allowable improvements for Single Family, Townhomes, HUD approved Condos (interior only) or Duplex
- Roof work including gutters & downspouts
- Upgrade of existing HVAC systems
- Upgrade Plumbing & Electrical Systems
- Replacement of Flooring
- Painting of both exterior and interior
- Basement finishing and remodeling, which does not involve structural repairsÂ
- Basement waterproofing
- Window and door replacements and exterior wall re-siding
- Major reconstruction or new construction
- Repairing structural damage
- Anything requiring blueprints
- Anything that will take longer than 3 months
- Anything that will take longer than 30 days to start