This will show you the minimum requirements for an FHA 203k project
The electrical system must be a minimum of 100 and with breakers no
fuses are allowed. So if you're dealing with an older home that has a
few system is a penny fuses or cartridge fuses they must be upgraded to a
breaker type system with 100 A minimum 220 V.
Attic MUST be insulated
Attic insulation must be installed if there is none present. Many homes
were upgraded some years back when R19 was the norm. It's my
understanding that these do not have to be upgraded though we always
recommend it as insulation is an easy way to recover your investment.
Weatherization includes weather stripping, caulking at the window and
door frames, and in general tightening up the home to minimize air and
Caulking goes right along with weatherization like a hand in glove.
Minimum property standards (MPS)
The FHA minimum property standards primarily consist of or deal with
Health and safety issues. That is, anything that is unsafe should be
fixed anything that's a health or safety issue should be remedied. In
general, this means badly soiled carpet should be replaced, broken glass
or Windows need to be repaired. Boards with nails sticking out of them
need to be removed from the site.
There is another aspect of the minimum property standards that deals
with whether or not the home appears that it will last as long as the
mortgage that were putting in place. So if the front porch is falling
apart now, it likely won't last another 30 years and should be repaired.
This would include termite issues, dry rot, and broken support
members. The caveat is that the home under normal owner maintenance
should have the appearance of lasting as long as the mortgage.
There isn't the day that goes by that someone doesn't tell me they just
want to do the bare minimum repairs required by HUD/FHA. Then they'll
fix the house up after they moved in at their own pace and at their own
expense. In many cases the saddens me a bit because I think it's so
important to do as many of these things as possible before they move in
so they can enjoy their home.
We can do the minimum that is the problem, but is it what they really
want. You do not want to be a slave to your house. With the interest
rates as low as they are today. It makes no sense not to get most of
the work done right now. Then sit back and enjoy your home.
We are seeing lots of failed septic systems which is repairable with the Full 203k. Need a lender try Don Jr at Prospect Mortgage
-Mike Young, 203k Team Leader
With offices coast to coast and HQ now at PMB 168, 5055 Business Center
Drive, Suite 108 Fairfield, CA 94534 1.707.812.7668. We have fourteen
offices in CA covering both CA states, NorCAL and SoCAL where we can
cover the entire state.
To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation".