For Those Who See Possibilities
Our 203(k) program helps borrowers rehabilitate their property with a single loan that finances both the purchase price and the costs of home improvements, before they even move in.
This is the perfect program for those eligible future homebuyers who want to take a “fixer-upper” and transform it in their dream home. The costs of home repairs can include improvements like:
- Modernization and improvements to the home’s function
- Structural alterations and reconstruction
- Elimination of health and safety hazards
- Adding or replacing roofing
- Adding or replacing floors
- Major landscape work
There are two options when it comes to a 203(k) loan – Standard or Limited. A Standard 203(k) is designed for more extensive repairs, with a minimum of $35,000 in repairs. A Limited 203(k) is designed for non-structural repairs up to $34,999.
- Choose your own consultant
- No consultant needed for the Limited 203(k)
- Minimum of $5000 repairs with no maximum repair limit
- Refi is considered a rate and term refi
- Borrower cannot do the work (no self-help)
- Appraisals for purchase only receives the “After-Improved Value”
- 203(k) worksheet will determine highest allowable loan amount & LTV
- Standard 203(k) – draws to Contractor are made as the work progresses
- Standard 203(k) allows for structural changes
- Work completed in 6 months
- 6 months of mortgage payments can be included in Standard 203(k)
- No seller seasoning for HUD, REO, inherited properties or bank owned
- Minimum loan amount $125,000
Give us a call to discuss how MortgageDepot can help you and your business!