RENOVATION LOAN RESOURCES

 

Loan Types

  • Requires a HUD consultant who inspects the property, consults on the repairs and the associated costs, manages the project and provides a work write-up
  • Minimum repair amount of $5,000 with no maximum cost
  • Finances all eligible renovations included in the Streamline 203(k) plus certain structural alterations and major reconstructions such as:
    • Upgrading garages, bathrooms and kitchens (including new appliances)
    • Removal of health and safety hazards
    • Landscaping and other aesthetic improvements
    • Installation of wells or septic systems
    • Handicapped accessibility alterations

Eligible vs. Ineligible Borrowers

  • U.S. citizens
  • Permanent resident aliens
  • Qualified non-profit organizations
  • State and local government agencies

  • Foreign nationals
  • Corporations or limited liability companies (LLCs)

Eligible vs. Ineligible Properties

The property must have been completed for at least one year.

  • 1 to 4-unit attached and detached single family residences and planned unit developments
  • FHA-approved condos
  • Mixed-use developments (conditions apply)
  • Modular homes

  • Cooperatives
  • New construction
  • Manufactured homes
  • Properties with non-conforming construction that cannot be remedied
* Homes must be occupied by the owner. No second homes or investment properties. Transaction must be a purchase loan or refinance. Identity of interest (buying from a relative or business partner) is not permitted. Loans are subject to certain appraisal and construction requirements.
 

Renovation Loan Checklist

While you’re envisioning all the new appliances, sparkling new granite countertops, and fresh paint colors, the appraiser that evaluates your new home is inspecting certain things to ensure they meet HUD’s minimum property standards. Follow this checklist ahead of time to determine if these items need to be included in your repair list.

  • Exposed wiring
  • Chipped/peeling paint
  • Mold or mildew
  • Termite treatment
  • Windows open/close freely
  • Missing window screens
  • Inadequate caulking or weather-stripping
  • Missing electrical switches, outlets, or plates
  • Missing flooring or tiles
  • Damaged flooring
  • Missing built-in appliances
  • Missing bathroom fixtures
  • Water damage/water or dampness in basement
  • Missing handrails (3+ steps)
  • Remaining life of roof
  • Missing gutters
  • Soffit/fascia/siding damage
  • Utilities operational
  • Well/septic damage
  • Water heater (relief valve and proper strapping)

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