What Kind of Fixer-Upper Did I Get Myself Into?

Posted By on Mar 19, 2012 | 0 comments

By Mylene Thomas

FHA’s 203(k) loan for your fixer upper that you’ve either just purchased or you already own falls into one of 2 categories: Streamline or Standard. “Standard/Rehab (minimum $5,000 up to 110% of the improved appraised value) & the Streamline (work is less than $35,000…up to 110% of the improved appraised value).

Example: Purchase price is $100,000. Upgrades/Repairs/Improvements will cost $15,000. Borrowers loan amount is $115,000 (max 110% of after fix-up appraised value).”*

The good news- we handle them both. It’s often a difficult task to find a qualified Class A General Contractor with the ability AND willingness to sign on for either one. We are experienced and qualified to handle 203(k) projects and that alone can make a world of difference to you and the lender when going through the administrative processes as well as the obvious remodel. If we as your contractor do not meet the approval of your underwriter based upon the standards set out by the lender and the FHA program then we aren’t your contractor and you’re stuck up a creek without a paddle.

Thankfully that’s never happened to any of our homeowners and the 203(k) renovations were a success. Our most recent rave comes from a client’s lender who is known for his expertise in navigating the 203(k) process. Nice to know the experts approve of us too!

“Hope to refer you more business.  Great service!  Thanks, Bob” (Bob Miller, Southern Trust Mortgage) – January 19, 201

* www.203kcontractors.com

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