203k FHA 97% LTV Rehab Loan Program
Tuesday, December 16th, 2008
This is a program that should get a lot of people out buying houses with it’s many possibilities. It’s the 203K program which works with FHA financing and it’s got a very high 97% LTV and I find it to be a very aggressive loan program for rehabbers in this market.
*One Time Close
*97% LTV of After-Improved Value
(Value is determined by Appraisers estimate of the properties value after completing the proposed project)
*Up to $35,000 Available for Rehab Project
*50% of Total Rehab Amount Available the Day of Closing (No Waiting for Funds)
*6% Seller Concessions
Allowable Improvements and Repairs
*Repair/Replacement of Roofs, Gutters and Downspouts
*Repair/Replacement/Upgrade of Existing HVAC Systems
*Repair/Replacement/Upgrade of Plumbing and Electrical Systems
*Repair/Replacement of Flooring
*Minor Remodeling, Such as Kitchens and Bathrooms
*Painting, Both Exterior and Interior
*Weatherization, including Windows, Doors, Insulation, Weather Stripping Etc.
*Purchase and Installation of Appliances, including Free-Standing Ranges , Refrigerators, Washers/Dryers, Dishwashers and Microwave Ovens
*Accessibility improvements for Persons with Disabilities
*Lead-Based Paint Stabilization or Abatement of Lead-Based Paint Hazards
*Repair/Replace/Add Exterior Decks, Patios, and Porches
*Basement Finishing and Remodeling
*Basement Waterproofing
*Window and Door Replacements and Exterior Wall Re-siding.
*Septic System and/or Well Repair or Replacement
This information is deemed accurate, but can change at anytime, please email for the most recent guidelines.
Email me at ron@minnesotainvestors.com if interested in buying some homes with this program.
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Borrower(s) Shopping Guide to Qualified Repairs Allowed with 3.5% Down |
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Minimum Down 3.5% of Total Project Cost (Funds can be own or gifted) |
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Repair/ Replacement of roof, gutters, downspouts with permit |
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Heating/air conditioning- possible permit |
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Upgrade/Repair plumbing, and electrical systems with permits |
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Septic system and/or well repair or replacement with permits |
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Replacement of flooring, windows, doors, exterior wall re-siding |
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Minor remodeling such as kitchen or bath with no structural repairs, permit maybe required |
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Painting of exterior/interior |
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Purchase and installation of appliances |
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Handicapped accessibility improvements |
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Weatherization, painting, basement waterproofing |
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Repair/replace/add deck, patio or porch with permit |
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Minor remodels that do not involve structural repairs |
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Basement finishing and remodeling, which does not involve structural repairs with a permit |
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Pool repair maximum of $1,500 in repairs allowed |
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Examples of repairs that do not qualify for the program: |
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Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall; |
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New construction (including room additions); |
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Repair of structural damage; |
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Repairs requiring detailed drawings or architectural exhibits; |
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Landscaping or similar site amenity improvements; |
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Any repair or improvement requiring a work schedule longer than six (6) months; or |
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Rehabilitation activities that require more than two (2) payments per specialized contractor |
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NO to a garage, unless you are repairing an existing one. Cannot build a garage. |
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