It seems kind of silly to have to ask the question, "is that a bedroom?" when you see what obviously looks like one. Our friend, you might just be surprised that what you see might NOT be a bedroom
203k Whats It All About
The FHA 203k loan is a specialized renovation or construction loan, backed by the Federal Housing Administration. It is available to both buyers and refinancing households, and combines the traditional "home improvement" loan with a standard FHA mortgage, allowing homeowners to borrow their renovation costs. There are two variations of the 203k loan, the first is the Streamlined 203k. The Streamlined 203k loan is for less extensive projects and cost are limited to $35,000. The other 203k loan type is the "standard" 203k. The standard 203k loan is meant for projects requiring structural changes to homes including moving walls, replacing plumbing, or anything else which may prohibit you from living in the home while construction is underway. There are no loan size limits with the standard 203k but there is a $5,000 loan size minimum.
According to FHA:
You can use the FHA 203k loan to purchase a home on a plot of land, then repair it
You can use the FHA 203k loan to purchase a home on another plot of land, move it to a new plot of land, then repair it
You can use the FHA 203k loan to refinance an existing home, then repair it
All monies from a 203k FHA loan must be used for home improvement, and can only be used on single family dwellings, and multi-family of less than 4 units.
Samples of repairs for the Streamlined 203k include items such as:
HVAC repair or replacement
Roof repair or replacement
Home accessibility improvements for disabled persons
Minor remodeling, which does not require structural repair
Basement finishing, which does not require structural repair
Exterior patio or porch addition, repair or replacement
Samples of the standard 203k repair items include:
Relocation of load-bearing walls
Adding new rooms to a home
Landscaping of a property
Repairing structural damage to a home
Total repairs exceeding $35,000
If you think the 203k loan could be beneficial to you in either buying or repairing your current home, give us a call if you need a partner in exploring 203k. We're in the office daily at Keller Williams Realty, 1033 Hamilton Place in Johnson City TN, and are just a phone call away at (423) 433-6517.
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Holding a BS in Environmental Science, and MA in Education, real estate was not Shields Team Buyer Specialist Rayne Price's first career choice. It was only after encouragement from his wife and a cl....
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