Naples Real Estate
Home
What Is A 203k Mortgage?
by Al Beatrice, American Eagle Mortgage
The streamlined 203k limited repair program can be used to purchase a home that requires repairs or rehabilitation.
How A 203k Loan Works
The buyer submits the cost estimates from qualified contractors for rehabilitation/repairs to the lender. Appraiser bases value on “after-improved” structure. Once loan closes,the funds are dispersed in 2 draws. Must complete work within 6 months of closing.
Overview Of 203k
- Can be used on HUD Repossession purchase for repairs and/or improvements up to $35000.
- Simplifies the process – no plan review or HUD consultant.
- Simply submit the bids from qualified contractors for the work.
Repairs Allowed
- Repair/replace roofs, gutters and downspouts
- Repair/replace heating/cooling, plumbing and electrical systems
- Repair/replace flooring
- Minor remodeling of existing rooms that doesn’t involve structural repair
- Painting, both internal and external
- Purchase of appliances
- Lead based paint stabilization
- Repair/add exterior deck, patio or porch
- Repair/replace well and septic systems
- Weatherization including storm windows, doors or insulation
- Accessibility improvements for persons with disabilities
Repairs Not Allowed
- Major structural rehabilitation
- Room additions
- Landscaping
- Repairs of structural damage
If you are interested in the possibility of qualifying for one of these loans, please call Al Beatrice at American Eagle Mortgage at 239-370-1158 for more information. He can make sure you qualify and the amount of money you can borrow then we can start looking for a new home that meets that criteria. Call me at 239-601-3174 for more information!
Remember, it is always toasty in Naples and you deserve your piece of Naples sunshine and a new home!
Leave a Reply
You must be logged in to post a comment.