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AmeriFirst Home Mortgage - Chicago, IL
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Here's a great article and video that talks about 5 important facts regarding a Homestyle Renovation Loan.

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Realtor Association of Fox Valley Holiday Party sponsored by AmeriFirst.
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When Is A 203K Helpful For The Basics In A Home?

An FHA 203K loan is often selected by home buyers or those wishing to finance improvements to their current home. Clients might plan a new kitchen or new baths or even hardwood floors to replace carpeting for example. In other words major improvement projects. But a 203K can also be used to finance more overlooked or minor issues that most any home may have.

Below are conditions some many consider minor and a few not so minor that may be reason to use a 203K to refinance your current home to fix all these in one project or if buying a home to make it safer and secure to occupy.

Every 203K will involve doing an appraisal on the home, even as a refinance of the home you own today. The Appraiser will review a Contractors proposal defining the specifics and cost of all improvements planned in order to arrive at the “future as completed value” of the home used to approve the 203K loan. The conditions below you may not be aware of that the appraiser will be looking for to make sure the property meets HUD minimum property standards and will required to be included in the improvements in any case. While this list may not be all inclusive, using a 203K to address these items may be all you need to bring your home up to a level that is safe and healthy to use without doing a major renovation.

Peeling or chipping paint
Any signs of mold or mildew
All windows freely open and close
Missing electrical fixtures, switches/outlets and switch/outlet plates
Missing flooring, including missing tiles
Flooring that is in disrepair or heavily soiled
Handrails if there are more than three steps
Approximate remaining life of the roof (there should be at 2 least years)
Hot water heater – equipped with a relief valve to the floor
Water stains on walls and ceilings
Well/septic – separate inspection- highly recommended
Missing bathroom fixtures and/or cabinet doors
Foundation issues– if present, you will need to use the 203k Full renovation program
Missing/nonfunctioning gutters and/or downspouts
Missing screens on windows
Missing kitchen fixtures and/or cabinet doors
Damage to the exterior of home including soffit, fascia and siding
Utilities should be turned on and checked for operation
Adequate caulking and weather stripping on doors and windows
Missing built-in appliances
Dampness or water in basement
Signs of termite damage
Exposed wiring
Missing door knobs

Many times a home just needs the basics fixed that affect health, safety, security and sanitation. Then later the major projects can go forward. Any loan can be refinanced with a 203K or a HomeStyle renovation loan in the future to complete “Phase Two”, even an existing 203K.
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