Renovation Financing

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According to International City Mortgage, renovation loan programs are available for properties that need work. Here’s an idea of the programs that are available:

203K

The FHA Section 203(k) insurance program enables borrowers to finance the purchase or refinance of a home and the cost of its rehabilitation through a single mortgage. This program is used for large, complicated improvements such as major rehabilitation, remodeling, new construction such as a room addition, repairs to structural damage, or site amenity improvements.

203K-S

The Streamlined FHA 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. This program comes with a total rehabilitation amount of $35,000. Examples of eligible improvements are listed below (this list is not all-inclusive):

  • Repair/Replacement of roofs, gutters, and downspouts
  • Repair/Replacement/Upgrade of existing heating, ventilation, and air conditioning systems
  • Repair/Replacement of plumbing and electrical systems
  • Repair/Replacement of flooring
  • Minor remodeling that does not involve structural repairs, such as kitchens
  • Exterior and interior painting
  • Weatherization, including storm windows and doors, insulation, and weather stripping
  • Purchase and installation of appliances, including free-standing ranges, refrigerators, washers and dryers, dishwashers, and microwaves

Our newest listing, a historic property at 22195 Prospect Street needs work. We’ll have information available at this week’s scheduled Open Houses!

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One Response to “Renovation Financing”

  1. Paul Welden on August 3, 2011 at 12:12 pm

    Anna – Good post on the 203k.
    There are many benefits of the 203k and it’s exciting to see Realtors like you get involved with promoting its use. In the Bay Area there were 32 203k loans closed in July 2011 and 268 closed 203k loans since Oct 1, 2010. The use of the 203k is increasing at a rapid pace (~600% increase July 2007-July 2011) and the Realtors like you that promote and embrace it can help a lot of people.
    It’s important to use 203k educated/experienced professionals (Realtor – Anna May, lender, contractor). Certified 203k Contractors are recommended and found online at http://203kContractors.com.

    Keep up the good work, and I hope that you will continue to use the 203k!