 |
It's time to make a call
The very first thing to do is call Gravity - the Consultant is your guide into the loan, and we will help every step of the way.
As professional 203(k) Consultants, we handle a lot of these loans, which is your
assurance that we know exactly what to provide to the Lender and how to
handle the Contractor.
It has been our experience that a lot of misinformation exists on the web about
this program, and it is VERY IMPORTANT to have clarity and direction early when
you are first considering the property, so please call us when you are thinking
about going under contract.
But First, consider this thought...
Have you ever wished you had known BEFORE THE APPRAISAL that your Dream Home didn't meet FHA/HUD Minimum
Property Standards (MPS)? Us too. Follow this LINK.
The 203(k) WHAT loan?
There are TWO primary types of 203(k) loans, and as we are discovering, the Consultant is being required on more and
more Streamline loans - not just the Full 203(k). Please give us a call and we can talk about this in more detail, as you
want to pin this down before you get too far with the Lender. Note that all lenders are not equal in this arena - closing a
203(k) has to be done by an EXPERIENCED lender, call us and we can recommend one.
The 203(k) Streamline
The 203k Streamline program is intended for uncomplicated rehabilitation or improvements to a home for which permit
drawings, consultants, engineers or architects are NOT required. This program allows discretionary improvements
and/or repairs shown below:
• Repair/Replacement of roofs, gutters, down spouts and diverters.
• Repair/Replacement of existing HVAC systems-- unless it's a theft situation where tertiary damage has occurred.
• Repairs to plumbing fixtures, and very minor electrical items.
• Repair/Replacement of flooring.
• Minor interior remodeling, such as kitchens and bathrooms, which do NOT involve structural alterations.
• Painting the exterior and/or interior. All surfaces must be in stable condition in order to be painted.
• Weatherization: windows, doors, insulation, weather stripping, caulking or new siding.
• Appliances: including ranges, refrigerators, washers/dryers, dishwashers and microwaves and hoods.
• Accessibility improvements for persons with disabilities. Pouring concrete is NOT allowed without a permit.
• Lead-based paint stabilization or abatement of lead-based paint - interior and exterior.
• Repairs to decks, patios and porches. New decks allowed with permit and zoning approval.
• Basement finishing and remodeling, which does not involve structural repairs.
• Basement waterproofing.
• Mold remediation.
• Septic system repair or replacement.
Mortgagors may NOT use the 203(k) Streamline loan program to finance any required repairs arising from the appraisal
that do not appear on the list of Streamlined 203k eligible work Items or that would:
• Necessitate an FHA 203(k) Consultant to develop a “Specification of Repairs" aka Work Write-Up.
• Require plans or architectural exhibits.
• Require a plan reviewer.
• Require more than six months to complete.
• Result in work not starting within 30 days after loan closing - or cause the homeowner to be displaced from the
property for more than 30 days during the time the rehabilitation work is being conducted. (FHA anticipates that, in a
typical case, the homeowner would be able to occupy the property after mortgage loan closing).
The Full 203(k)
This program is generally for more aggressive remodeling and alterations, items listed are not eligible for financing under
the Streamlined 203k loan program.
• Major rehabilitation or major remodeling, such as the relocation of load-bearing partition walls.
• New construction, such as room additions or attached structures.
• Repair of structural damage to load bearing partitions or floor systems.
• Repairs requiring detailed drawings or architectural exhibits - or any permit drawings.
• Landscaping or similar site improvements that correct an inherent flaw with water flow.
• Any repair or improvement requiring a work schedule longer than six (6) months; or
• Rehabilitation activities that require more than two (2) payments per specialized contractor.
It is important to note that certain types of theft can turn a Streamline into a Full K loan. Regardless, you are going to
need a professional Contractor - who has completed the Contractor Validation Package for the Lender. Please CALL
US, and we can recommend what the NEXT STEPS are.
**Your project will require a BUILDING PERMIT, and will more than likely need PERMIT DRAWINGS, ask us how to roll
the drawing fee into CLOSING COSTS so there is no out of pocket expense for this.
The very first thing to do is call Gravity - the Consultant is your guide into the loan, and we will help every step of the way.
As professional 203(k) Consultants, we handle a lot of these loans, which is your
assurance that we know exactly what to provide to the Lender and how to
handle the Contractor.
It has been our experience that a lot of misinformation exists on the web about
this program, and it is VERY IMPORTANT to have clarity and direction early when
you are first considering the property, so please call us when you are thinking
about going under contract.
But First, consider this thought...
Have you ever wished you had known BEFORE THE APPRAISAL that your Dream Home didn't meet FHA/HUD Minimum
Property Standards (MPS)? Us too. Follow this LINK.
The 203(k) WHAT loan?
There are TWO primary types of 203(k) loans, and as we are discovering, the Consultant is being required on more and
more Streamline loans - not just the Full 203(k). Please give us a call and we can talk about this in more detail, as you
want to pin this down before you get too far with the Lender. Note that all lenders are not equal in this arena - closing a
203(k) has to be done by an EXPERIENCED lender, call us and we can recommend one.
The 203(k) Streamline
The 203k Streamline program is intended for uncomplicated rehabilitation or improvements to a home for which permit
drawings, consultants, engineers or architects are NOT required. This program allows discretionary improvements
and/or repairs shown below:
• Repair/Replacement of roofs, gutters, down spouts and diverters.
• Repair/Replacement of existing HVAC systems-- unless it's a theft situation where tertiary damage has occurred.
• Repairs to plumbing fixtures, and very minor electrical items.
• Repair/Replacement of flooring.
• Minor interior remodeling, such as kitchens and bathrooms, which do NOT involve structural alterations.
• Painting the exterior and/or interior. All surfaces must be in stable condition in order to be painted.
• Weatherization: windows, doors, insulation, weather stripping, caulking or new siding.
• Appliances: including ranges, refrigerators, washers/dryers, dishwashers and microwaves and hoods.
• Accessibility improvements for persons with disabilities. Pouring concrete is NOT allowed without a permit.
• Lead-based paint stabilization or abatement of lead-based paint - interior and exterior.
• Repairs to decks, patios and porches. New decks allowed with permit and zoning approval.
• Basement finishing and remodeling, which does not involve structural repairs.
• Basement waterproofing.
• Mold remediation.
• Septic system repair or replacement.
Mortgagors may NOT use the 203(k) Streamline loan program to finance any required repairs arising from the appraisal
that do not appear on the list of Streamlined 203k eligible work Items or that would:
• Necessitate an FHA 203(k) Consultant to develop a “Specification of Repairs" aka Work Write-Up.
• Require plans or architectural exhibits.
• Require a plan reviewer.
• Require more than six months to complete.
• Result in work not starting within 30 days after loan closing - or cause the homeowner to be displaced from the
property for more than 30 days during the time the rehabilitation work is being conducted. (FHA anticipates that, in a
typical case, the homeowner would be able to occupy the property after mortgage loan closing).
The Full 203(k)
This program is generally for more aggressive remodeling and alterations, items listed are not eligible for financing under
the Streamlined 203k loan program.
• Major rehabilitation or major remodeling, such as the relocation of load-bearing partition walls.
• New construction, such as room additions or attached structures.
• Repair of structural damage to load bearing partitions or floor systems.
• Repairs requiring detailed drawings or architectural exhibits - or any permit drawings.
• Landscaping or similar site improvements that correct an inherent flaw with water flow.
• Any repair or improvement requiring a work schedule longer than six (6) months; or
• Rehabilitation activities that require more than two (2) payments per specialized contractor.
It is important to note that certain types of theft can turn a Streamline into a Full K loan. Regardless, you are going to
need a professional Contractor - who has completed the Contractor Validation Package for the Lender. Please CALL
US, and we can recommend what the NEXT STEPS are.
**Your project will require a BUILDING PERMIT, and will more than likely need PERMIT DRAWINGS, ask us how to roll
the drawing fee into CLOSING COSTS so there is no out of pocket expense for this.
 |  |  |  |  |  |  |