Uninsured
Uninsured proertiesare Not eligible for FHA insured financing. This often indicates the property does not meet Minimum Property Standards (MPS) and that estimated repairs required to meet MPS exceed $5,000. Purchases must be made by FHA 203(K), Conventional Financing, or Cash.
FHA 203(K) Financing
The 203(k) loan program offers borrowers the resources to rehabilitate a home that may be in need of repair, either the home that they currently live in, or that special fixer-upper opportunity. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.
WHAT CAN BE ROLLED INTO THE 203(K) LOAN
Structural Alteration and Reconstruction:
· Elimination of health/safety hazards - Access for the disabled
· Plumbing, heating air conditioning, and electrical upgrades
· Well and/or septic repairs - Roofing, gutters and downspouts Flooring, tiling and carpeting
· Energy conservation improvements
· Major landscape work and site improvement
Other Eligible Costs: (THESE COSTS MAY BE FINANCED INTO THE 203(K) MORTGAGE LOAN)
· Contingency reserve (10-15%) - Up to 6 months PITI mortgage payments
· Permit costs - Consultant fees -Inspection and title update fees -Architectural & Engineering fees (if needed)