I am looking to get a contractor for a foreclosed house i intend to buy using 203k as means of finance. can anyone direct me to where i can a directory for contractor who have good understanding of how thing are done from a 203k perspective.
Also a referral will be well appreciated
There are two types of 203k loans: a streamlined version and a regular version. The streamlined 203k program is meant for homes that don’t need structural repairs and are capped at a maximum of $35,000 in repairs. No minimum amount of repairs must be made. Traditional 203k loans have a minimum requirement of $5,000 and can be used for structural repairs. Both loan programs require the repairs to start within 30 days of the loan closing and to be completed within six months.
The FHA has specific guidelines about types of projects you can finance with a 203k loan, but generally the only home improvements that you can’t finance are luxury items such as adding a swimming pool.
Well said, i am actually going for a regular 203k just so i dont get stuck in the mud when i get a GC to give an actual estimate/bid for the rehab. I dont expect the loan to fund such luxurious item like the example you mentioned but i do expect the basic of appliances like dishwashers, ranges,washing machine and the likes would scale through
We are experienced with the FHA 203k program and are general contractors and property managers. It's tough but we have been managing properties for banks and lending institutions and have put hundreds of homes in compliance with FHA lending guidelines. Feel free to ask me any questions regarding the process.
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