Renovation - 203(k) Limited Loans in Jeffersonville, IN
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Renovation - 203(k) Limited Loans
Have you found a home with sooooo much potential, but just needs a few updates to make it perfect?
Maybe it needs an updated kitchen, new flooring, or maybe a pole building on the property for your hobbies. If so, then we have the perfect loan option for you. It’s for both small or large-scale updates.
This is an FHA loan product, so the down payment (DP) amount lower than the HomeStyle conventional loan product. This is perfect for smaller, cosmetic type projects, such as paint, carpet, appliances, etc.
Couple of points to mention about this loan product:
- 3.5% DP ($7,000 on a $200,000 home) is required if it is your primary residence
- This CANNOT be used for a second home or an investment property.
- There is also a 620 Minimum credit score, but there are some additional stipulations.
There is no minimum to the repair costs, but there is a maximum of $35,000. Any repairs that are highly specialized require a HUD consultant. The consultant facilities the repairs between the you and the contractors. Once you contractor has provided a bid for the repairs, then you can determine whether or not to bring in a consultant. Please note contactors will need to be properly licensed to complete the work.
Since there is a bit of additional work/coordination to make these loans a success, we’ve created this graphic on how the process works.
"Successful homeownership is not just putting people into homes, it's also making sure people keep their homes. "