203K Reno Loan

Streamline or Limited 203K

An FHA 203(k) loan simplifies the home renovation process by allowing you to borrow money for your home purchase and home renovation costs using only one loan.

Less than $35,000 in repairs.
Minor Home Repairs.
No Structural Improvements.
No Luxury Improvements such as a pool or hot tub.
Repairs must begin within 30 days of closing.
Owner can complete repairs.
No HUD consultant is needed.

Standard or Full 203K

More than $35,000 in repairs.
Major Home Repairs.
Allows Structural Improvements.
No Luxury Improvements such as a pool or hot tub.
Repairs must begin within 30 days of closing.
Contractors must com-plete repairs.
HUD consultant is required.

Eligible Activities:
The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one- to four- unit structure. The types of improvements that borrowers may make using Section 203(k) financing include:

structural alterations and reconstruction
modernization and improvements to the home's function
elimination of health and safety hazards
changes that improve appearance and eliminate obsolescence
reconditioning or replacing plumbing; installing a well and/or septic system
adding or replacing roofing, gutters, and downspouts
adding or replacing floors and/or floor treatments
major landscape work and site improvements
enhancing accessibility for a disabled person
making energy conservation improvements

HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards.

Pulled from Hud.gov