What Is A 203k Mortgage?

Mortgage-Information1by 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!

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