- Additions to the structure
- Kitchen, bath or basement remodels
- Attic or garage conversions
- Patios, decks, or terraces
- Roofing and landscaping
- Safety, energy efficient and electrical upgrading
- Handicapped accessibility
- And much more improvements
Ineligible or Luxury Items:
- Swimming pools, spas, hot tubs, tennis courts, gazebos, barbecue pits, saunas, or
alterations to support commercial use.
An attractive option for borrowers who intend in occupying the property as their primary
- Would like to rehabilitate a foreclosure, REO or short sale property that may have been
neglected or damaged by the previous occupant
- Rebuild a home that’s been demolished but utilize part of the existing structure
- Would like to convert a single family home into a multi-family or vice-versa
- Want only one loan, with one closing for both the rehabilitation and purchase financing
- May not qualify for conventional financing
- Would like to avoid a second mortgage or HELOC for financing the cost of the repairs
- Would like to obtain financing based upon the “as completed” value of a home
- Would like to rehabilitate, repair or improve their condominium (The Condo must be
approved by FHA or FHA approvable - Talk to John about getting the condo approved he's
done this too in the past).
- Expand your market reach
- Help people find affordable financing and realize the dream of homeownership
The FHA 203(k) Consultant Role:
Finally, John will come in as the consultant at the time of purchase to estimate (In writing the
“Work Write-up Report”) and verify all the costs associated with improving the property. This
must be performed in advance in order for the lender to qualify the purchaser/borrower for the
loan that now includes all of the improvements that are either required or requested to be done.
John will also be performing various inspections throughout the construction process to assure
compliancy with HUD’s procedures/requirements until all work is 100% completed. Please
note that there is a fee charged (Allowable by FHA-See below the allowable charges) to the
borrower and is based upon the amount of improvements to be performed on the property.
Initial Work Writeup Fees for 203(k):
Feasibility Only = $200 or
A Minimum fee OF $400 IS CHARGED FOR REPAIRS LESS THAN 7,500
A Fee of $500 is charged for repairs over $7,501- $15,000
$600 for repairs over $15,001 - $30,000
$700 for repairs over $30,001 - $50,000
$800 for repairs over $50,001 - $75,000
$900 for repairs over $75,001 - $100,000
$1000 for repairs over $100,001
Note: These fees plus any additional may be added pursuant to HUD’s requirements as outlined
in HUD Handbook 4000.1 or revised Mortgage Letter issued.
Multi unit buildings require an additional $25 per unit which will be added to the fees shown
Example: If a two-unit building needs $15,000 worth of work to be completed, the fee would be
Work Write up Fee (Includes Feasibility) = $500
Multi unit (2 units + $25 for the additional unit) = + 25
For Conventional Renovation Loans: The Fannie Mae "Homestyle" Program is very similar to
the FHA 203(k) loan, except for two major differences which is 5% down vs 3.5% & the
maximum mortgage is much higher (Around 50k more).
R.E. Brokers Note: Please note that I can come out to perform a "Feasibility" Report for $200,
when your prospective homebuyer may be on the fence and they want to know what the cost of
repairs may be before they commit. Also, if you're listing a home this program will help to
advertise it as a "Pre-Inspected" home performed by a FHA 203k Consultant.
Please don't delay and make your request asap by sending me an email and using one of the
Thank you for your service and we look forward to working with you.
203K Request Form pdf - Print, Scan & Email to us
Renovation request form - pdf
Kitchen after a 203(k) Loan
|FHA 203(k) Program Highlights