New home buyers spend an average of $17,500 in basic upgrades and repairs in the first two years after their purchase and 90% of that is placed on high interest credit cards. New homeowners empty their bank account for their down payment and closing costs when buying a new home. Then max out their credit cards doing the upgrades and repairs. No savings and maxed out credit. Not a great way to start home-ownership. What if there were a way to include the cost for all those repairs and upgrades in your 30 year fixed mortgage. Streamline/Limited FHA 203K does just that. It allows the home-buyer to get a quote from a contractor to complete any non-structural upgrades or repairs up to $30,000.
Examples of eligible repairs and upgrades are painting (inside and out), roof repairs or replacement, flooring (carpet, tile, wood), Complete kitchen remodels including free standing or built in appliances, complete bathroom remodels, and more. The Limited guideline says $35,000, however in that $35,000 are additional costs, a 10% to 15% contingency reserve, permit fees, etc. So keep the Limited bid at $30,000 or under and you won’t have to have the contractor re-write the bid.
We are the renovation center for our entire six billion dollar company from Maine to Maui if you are in need of a Renovation loan you need to look no further! Every renovation transaction goes through our renovation and support team. Processing and underwriting work together to ensure a quick and seamless closing. With over 100 years combined renovation experience our staff, using our “quick-close” renovation system clears all renovation transactions in thirty days or less from application to closing.