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About the 203K Loan
In the current real estate market, homebuyers are interested in finding homes that are both move-in ready and affordable. Distressed properties have become increasingly popular due to their price, potential for customization and unique charm. It’s common for buyers to come across homes in desirable neighborhoods or larger properties that catch their eye, only to realize that they require some degree of repair or renovation to fit within their budget.
The Federal Housing Administration (FHA) 203K program enables borrowers to either purchase or refinance their home while including the costs of rehabilitation in the same transaction.
Here are some highlights of the FHA 203K loan program:
- There is a $5,000 minimum requirement for HUD repairs, but no maximum limit.
- Improvements to outdated homes. This includes renovating kitchens and bathrooms, correcting structural deficiencies, energy conservation improvement, and more.
- Additions and expansions.
We can help you have a good renovation experience from start to finish!
It’s important to note that hiring a HUD Consultant can provide valuable protection during the 203K renovation process. However, choosing the wrong consultant can lead to additional expenses. That’s why it’s critical to hire the right 203K Consultant who has the experience and knowledge about the program requirements, so that they can manage your renovation project effectively.
Frequently Asked Questions
What is an FHA 203K Loan?
This loan program is open to prospective homebuyers, enabling them to purchase and renovate a home! Numerous property types are eligible for this program.
What is a 203K Loan/HUD Consultant?
A HUD Consultant performs a comprehensive analysis of your home to assess the cost estimate required to complete the work, and to bring it in compliance with HUD’s minimum property standards. Your lender will need to be informed about the associated costs of these renovations, so it is important to hire the right 203K Consultant who can determine these numbers accurately. Boggs Inspections services offers 203K HUD Inspections and Consulting services. Contact us today to learn more!
Can I Use This Loan for a Home That Needs a Lot of Rehabilitation?
Certainly! Projects involving structural modifications, additions, and other situations where the home is currently uninhabitable are ideal scenarios for considering an FHA 203k loan.
Do the Renovations Need to Be Completed Within a Certain Time Frame?
Yes, renovations need to start within 30 days of loan closure, and must be finished within 6 months.
Can I Repair or Add a Swimming Pool with a 203K Loan?
Yes! It is possible to renovate an existing in-ground pool. However, you cannot repair an above-ground pool since it is not classified as a permanent structure. Installation of a new pool, whether above ground or in-ground, is not permitted under the 203K renovations, as these are considered luxury items.
Can I Put an Addition on a Home using the 203K Loan?
Absolutely! As long as the property meets the minimum property requirements, aligns with your budget, and any identified health and safety concerns from the initial inspection by the consultant are addressed first.
Where we Service
We complete 203K Inspections in these counties: Pierce, Thurston, Mason, Lewis, Grays Harbor, and South King.