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203(k) Consulting

203(k) Consulting

203(k) Loans: Transforming Homes, Empowering Communities
What Is a 203(k) Loan?

A 203(k) loan, often referred to as a renovation loan, is a powerful financial tool that combines the costs of home repairs or renovations with the purchase price of the property. Backed by the federal government, these loans serve a dual purpose: promoting first-time homeownership and revitalizing communities by funding the rehabilitation of distressed properties.

Why Choose a 203(k) Loan?

No Income Limits:

Unlike some other loan programs, 203(k) loans don't have income restrictions. They're accessible to a wide range of borrowers.

Minimum Repair Thresholds:

You can use a 203(k) loan for minor repairs or major renovations. The minimum repair amount required is only $5,000.

Property Types:

Whether it's a single-family home, a duplex, a triplex, or a four-plex, 203(k) loans cover various property types. The key requirement is that the property must be your primary residence.

How IBCC Can Help:

As approved 203(k) HUD Consultants, we're well-versed in the complexities of these loans. Here's what we offer:

Guidance:

We'll walk you through the entire process, from understanding eligibility to completing paperwork.

Insightful Assessments:

Our expertise extends beyond code consulting. We evaluate properties, estimate repair costs, and ensure compliance.

Community Impact:

By facilitating 203(k) loans, we contribute to neighborhood revitalization and affordable housing solutions.

Some quick facts about 203(k) loans:

  • 40 year term
  • Minimum credit score of 500-580 (lender dependent)
  • Minimum down payment of 3.5% (for 580+ Credit scores, 10% for Credit scores 500-579)
  • Competitive interest rates (lender dependent)
  • Generous maximum loan amounts (check your zip code)
  • Property must be primary place of residence
  • Repairs must be complete within 12 months
  • Loan amounts greater than $75,000 require use of 203K consultant
  • May be used for mortgage, refinance, or stand-alone repairs
  • Repair loans for less than $75,000 may qualify as "Limited 203(k) loans" and not require a consultant
  • All local building code requirements must be filed and permits must be obtained prior to the commencement of work.

How IBCC Can Help:

As approved 203(k) HUD Consultants, we're well-versed in the complexities of these loans. Here's what we offer:

  • Phone/ video consultation (free)
  • Feasibility study (on-site inspection to document the existing conditions of the property and all repairs needed. We use thermography and moisture meters to check the walls and floors for unseen conditions that could affect repairs.)
  • Consultation with potential owner to discuss which repairs they would like to include in the loan (all repairs included in the loan must be completed within 12 months).
  • Report itemizing all the repairs that will be included in the loan with photographs and estimated cost of repair.
  • Retain and organize paperwork to provide to loan agent for loan initiation and draw requests (included in the service).
  • Draw inspections with reports at each "draw" phase of the project. Note that these do not replace any building department inspections.
Remember, obtaining a 203(k) loan involves navigating regulations and paperwork. Feel free to explore further on the HUD website, and when you're ready, IBCC will be here to assist you in securing the home that meets your needs.
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