The Loan Lady Blog

FHA Rehabilitation Loan

April 23, 2009

To those of you who are shopping for a fixer-upper, and those of you who have a home that needs improvements, I have a loan program for you!

The FHA 203K Rehabilitation loan is financed on the "as-completed" value of the home.  Borrowers obtain contractor estimates for the work to be done, up to a maximum of $35,000.  The escrow closes and the funds are released to the contractor as a partial draw to begin and then paid as work is completed.

Repairs or replacements that are eligible include roofs, existing HVAC systems, plumbing and electrical systems, flooring, painting, deck work, purchase and installation of appliances, window and door replacement, and much more.

Repairs that are not allowed are major remodeling, such as relocation of a load-bearing wall, repair of structural damage, room additions or landscaping.

Additional allowances of $8000 and $2000 are available for energy efficiency improvements and weatherization.

Loan amounts go up to $729,750 with as little as 3.5 down payment.  Other FHA qualifying guidelines apply.

Please call me to find out more about this power product.