Construction Loans

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Conventional Rehab Loans

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203K Construction Rehab Loan

This loan was devised to help homeowners who want to buy a home that needs some TLC.   This loan allows the rehab project and the mortgage to be combined into one loan!

 

Required project documentation

• Contractor Resume, License, Insurance
• Cost Estimates/Bids (labor, materials, permits)
• Detailed Description of Project
• Contract with Buyer for rehab work
• Additions require full plans and specs
• On Full 203k, Hud project consultant ‘s Report

To Be Eligible:

• Buyer needs “normal” FHA down-payment amount (currently 3.5% down)
• Seller CAN pay up to 6% concessions toward buyer’s closing costs and pre-paid expenses.
• The property must be a one-to-four-family dwelling that has been completed for at least one year.
• Property must meet provisions of local zoning requirements.
• Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.
• In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.