• Up-front MIP can be financed – all FHA loans have MIP
• Non-profit organizations are eligible with only 5% down payment and can buy multiple properties
• You can finance up to 6 months of mortgage payments (during the period when you can’t live there due to construction)
• Special HUD down payment programs
• Most closing costs can be financed
• FHA loans are assumable

We consider every 203k a Streamlined “k” when it has construction costs plus fees under $35,000 and they consist of simple or non-complex construction items…no structural work including room additions. There is no minimum amount of work to qualify for a Streamlined “k”. The consultant is brought in as a Plan Reviewer to ensure the lender that the contractor bid covers all of the “necessary” items required by the 203k Program. In addition, the consultant will prepare all the necessary contracts and disclosures so the lender has all that paperwork to add to their 203b paperwork and turn in. Most common problem is that you fail to include all necessary health & safety issues. Streamlined “k” means NO STRUCTURAL WORK NEEDED.

• Mixed-use properties – You can renovate a mixed-use property provided the commercial space represents less than one floor of the structure. The commercial uses cannot affect the health and safety of the occupants.
• Home buyers that purchase a home can refinance the property using the 203k within six (6) months of the original purchase, the same as if the buyer purchased the property with a 203k insured loan, to begin with. You get to count the money you originally put down as if it were in this new transaction. Bring your HUD-1 from the other purchase.
• The borrower will be eligible as a first-time home buyer without the three-year waiting period if they are legally separated or divorced, even if they had an interest in a home with their spouse, provided the individual no longer has an interest in the home.

Eligible Improvements There is a minimum requirement of $5,000 in eligible (necessary) improvements on the subject property for a Full 203k. Improvements to a garage, a new garage, a room addition, or an attached unit (if allowed by local zoning ordinances) can also be included in this first $5,000. The Streamlined “k” has no minimum amount of rehab. The Full 203k mortgage must include one or more of the items listed below.

• Structural repairs and alterations.
• Items such as room additions; repairing any and all structural damage.
• Improvement in functionality or modernization.
• Remodeled kitchens and bathrooms.
• Changes for aesthetic appeal, and the elimination of obsolescence.
• New exterior siding and new doors.
• Repair or replacement of plumbing, heating, air conditioning, or electrical system.
• Installation of well and/or septic system. Must be installed or repaired prior to beginning any other repairs to the property. Properties less than one acre in size can be limited on this item.
• Replacement of flooring, carpeting, or tile.
• Energy conservation improvements.
• New dual pane windows, storm windows, doors, insulation, and solar domestic hot water systems.
• Major landscape work and site improvement.
• Patios and terraces that improve the value of the property are equal to their cost or are needed to preserve the property from erosion.
• Improvements for accessibility to the handicapped. Handicapped retrofitting can be included in the cost of rehab.
• New cooking ranges, refrigerators, and other stand-alone appliances can be included in addition to the minimum $5,000 requirements.
• Painting and other cosmetic repairs.
• Fencing, new walks, and driveways, and general landscape work trees, shrubs or seeding).
• Repair of an existing swimming pool, up to $1,500. Any costs exceeding $1,500 must be paid into the
• Contingency reserve by the borrower.  NOTE: Items that will not become a permanent part of the property are not eligible. Luxury items are not eligible. These items include, but are not limited to new swimming pools, exterior hot tubs, saunas, spas, tennis courts, and barbecue pits.

1. Any single-family home up to a four-unit property that will be owner-occupied and has been completed (with a certificate of occupancy) for at least one year that is acceptable according to the provisions of local zoning requirements.
2. Homes that have been demolished or razed as a part of the rehabilitation process can be rehabbed as long as the existing foundation system is not affected and remains intact (as long as there is a portion of the original foundation).
3. A home can be moved onto a foundation on the mortgaged property, provided the proceeds from the sale of the previous location are not released until the foundation is properly inspected and the home is satisfactorily attached to the new foundation. Must be HUD inspected before and after the move. Must move from original position to new site.
4. Any property the buyer wishes to convert either from single-family into a two to four-family property or from a two to four-family dwelling into a single-family unit. Let’s take this one a little farther – You can take a 5-8 plex and turn it into a 1-4 unit property. Turn an 8-plex into a 4-plex.
5. A manufactured home that was built AFTER June 15, 1976, and has been on a permanent foundation for over one year is eligible, provided the unit must have been delivered to the site when it was new, prior to being occupied. Install a new manufactured home to replace an existing manufactured home provided it is on a permanent foundation.
6. A 203k can be used on a “mixed-use residential property” provided it meets the following requirements: The floor space used for commercial purposes does not exceed 25% for a one-story building, 33% for a three-story building, and 49% for a two-story building. The commercial use must not affect the health and safety of the residential occupants. The rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property.
7. Condominiums are eligible with the same restrictions as an FHA loan.

I can include required Federal Housing Administration (FHA) repairs in your inspection if you need them by request. Some lenders will require an FHA inspection to close. ARIS Inspection Service will provide the necessary FHA, 203K consulting and inspection services you need.

I will provide feasibility studies and work write-ups for renovation loans and document the renovation process. I really enjoy this job, as I get to see a property be taken from something distressed to a beautiful dream come true. I am with you all the way from the start to the end.

VA Inspection Check List:

1. Is the structure of the home sound? This includes construction of walls, floors, foundation, the roof and ceilings.
2. Has the exterior of the home been inspected? This includes looking at grading, elevation, drainage, fences, windows and trims, exterior lighting and landscaping.
3. Has the plumbing been inspected? This includes identifying the pipe materials that have been used and looking at toilets, showers, sinks, faucets, etc.
4. Have all systems been inspected? These include the chimney and fireplaces, water heaters, furnaces, air conditioning units and septic systems.
5. Have roof and attic been inspected? This includes roof construction, flashing and gutters, framing, ventilation and construction been built properly.
6. Has electrical work in the home been evaluated? This includes knowing what type of wiring a home has, looking at the grounding, looking at ceiling fans and light fixtures and evaluating the main panel.
7. Have the appliances been inspected? Includes documenting and inspecting the condition of dishwasher, range, built-in microwave, garbage disposal, smoke detectors and any other relevant small appliances that may be in the home.