The FHA 203K Rehabilitation Loan was started as a tool to help the revitalization of neighborhoods and communities in Phoenix, Arizona and throughout the United States. The 203k loan program offers borrowers the resources to rehabilitate or repair their new Phoeinx home that may be in need of limited repairs and/or upgrades without exhausting their savings. This can be used for either the purchase of a fixer-upper or the refinance of a home they currently occupy. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.
The FHA 203(k) loan is available to borrowers of all income levels who plan to occupy their house in Phoenix. This loan also opens the door for many Arizona first-time homebuyers and applicants with less than perfect credit, while still allowing for low down payments. Properties eligible for this product include any single family residences, condominiums, manufactured homes, townhouses and properties with one to four units located in the Phoenix area.
The Streamlined 203(k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The repair costs can be up to $35,000 and there is no minimum requirement. (***Please note that there are also 203(k) loan programs available without a maximum repair cost amount and additional improvements capabilities.)
The following is a list of some of the eligible improvements and/or repairs:
- •- Repair/Replacement/Upgrades of roofs, gutters, HVAC systems, plumbing, electrical systems and flooring
- •- Minor remodeling of kitchens and bathrooms
- •- Purchase and installation of appliances
- •- Painting – exterior and interior
- •- Weatherization including insulation, weather stripping, storm windows and doors
- •- Window and door replacement and exterior wall re-siding
- •- Lead based paint stabilization and abatement of lead based paint
- •- Repair/Replace/Addition of exterior decks, patios and porches
- •- Repair to existing swimming pools up to $1,500
- •- Repair/Replacement of septic system and wells
- •- Accessibility improvements for persons with disabilities
- •- Finishing/remodeling of basements, not including structural repairs
The actual cost of the renovation is based upon the contractors’ accepted contracts specifying the scope of work, cost of materials and labor and timeframe. All repairs must be completed by a contractor within 6 months of the closing date. Borrowers are required to have the necessary expertise and experience to perform work.Questions? Contact David Krushinsky Today!