Turn that fixer upper into your dream home
If you are looking at buying a used home that needs some work or refinancing your existing home that needs repairs you may qualify for a 203K loan. This program can help you with the purchase or refinance of a property by allowing you to roll-in the costs of repairs and improvements.
Stetler has been pre-approved by leading 203K lenders in this area, and we have been trained on the do's and the don'ts of what projects are allowed and not allowed under the 203K rules. This knowledge base will make the process less stressful for you as you renovate your dream home.
Which loan is right for you?
There are two types of 203K loans, Streamline and Standard. One of the most important starting points is to determine which loan suits you best. This will depend on the amount of improvement your property needs.
Streamline is used for homes that need minor repairs. The borrower can finance the purchase of an existing home and make improvements up to $35,000 before move-in. There are no minimum repair costs and the borrower must occupy the property.
Standard is used when a home needs major improvements, when repairs are structural, involves landscaping, or costs exceed $35,000. Homeowners can finance "desired" repairs or upgrades even if the home does not need any other improvements. Owner must occupy the property and must have a minimum of $5,000 worth of repairs. FHA loan limits are based on type of property and the location of the property being financed.
Streamline Eligible Improvements
*Minor renovations such as kitchens, baths and basement finishing which do not involve structural repairs.
*Repair or replacement of roofs, gutters, exterior wall re-siding, HVAC systems, flooring, septic systems, wells, plumbing, electrical, windows and doors.
*Accessibility improvements for persons with disabilities or the elderly.
*Painting interior and exterior.
*Weatherization, including storm windows and doors, insulation, weather stripping, etc.
*Purchase and installation of appliances such as ranges, refrigerators, washer and dryers.
*Repair/replace/add exterior decks, patios or porches.
Streamline Ineligible Improvements
*Structural changes like moving a load bearing wall or new construction like adding rooms.
*Landscaping or fencing.
*Work that will not start 30 days of loan closing or take more than 6 months to complete.
*Luxury items like swimming pools, hot tubs, tennis courts, etc.
Standard Eligible Improvements
*Structural alterations and reconstruction like room additions and adding a second story to a home.
*Major remodeling of kitchens, bathrooms, finishing of attics and basements.
*Major landscaping and site improvements such as grading and drainage problems, tree removal and repair of sidewalks and driveway, if they are a safety hazard to the property.
Call Stetler Construction (269) 441-1800
If this sounds like something you would be interested in give us a call. Stetler Construction will take care of all your building needs and wants. We will work with you and your 203K lender every step of the way to turn that existing house into the home you have always dreamed of owning.