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Eligible Improvements:
Ineligible or Luxury Items:
Target Market:
An attractive option for borrowers who intend in occupying the property as their
primary residence and:
The FHA 203(k) Consultant Role:
Finally, John comes in as the consultant at the time of purchase to estimate (In
writing the “Work Write-up Report”) and verify all the costs associated with
improving the property. This must be performed in advance in order for the lender to
qualify the purchaser/borrower for the loan that now includes all of the
improvements that are either required or requested to be done. John will also be
performing various inspections throughout the construction process to assure
compliancy with HUD’s procedures/requirements until all work is 100%
completed. Please note that there is a fee charged (Allowable by FHA-See below
the allowable charges) to the borrower and is based upon the amount of
improvements to be performed on the property.
A FEE OF $450 IS CHARGED FOR REPAIRS LESS THAN $7,500
A FEE OF $550 - OR MORE MAY BE CHARGED FOR REPAIRS BETWEEN
$7,501-100,000
*Please ask to see if you qualify for a discounted fee*
Note: Termite inspection done upon request.
Fees subject to change pursuant to HUD’s requirements as outlined in HUD
Handbook 4905.1 or revised Mortgage Letter issued.
Note: Multi unit buildings require an additional $50 per unit which will be added to
the fees shown above.
Example: If a two-unit building needs $25,000 worth of work to be completed, the
fee would be as follows:
Work-Write-up (Includes Feasibility) $550
Multi unit (2 units x $50) + $100
Total = $650
These fees and all other requirements will be discussed in detail when you meet,
call or email John directly.
"Thank you and I look forward to serving you and your customers in the future."
- Additions to the structure
- Kitchen, bath or basement remodels
- Attic or garage conversions
- Patios, decks, or terraces
- Roofing and landscaping
- Safety, energy efficient and electrical upgrading
- Handicapped accessibility
- And much more improvements
Ineligible or Luxury Items:
- Swimming pools, spas, hot tubs, tennis courts, gazebos, barbecue pits, saunas,
or alterations to support commercial use
Target Market:
An attractive option for borrowers who intend in occupying the property as their
primary residence and:
- Would like to rehabilitate a foreclosure, REO or short sale property that may
have been neglected or damaged by the previous occupant - Rebuild a home that’s been demolished but utilize part of the existing structure
- Would like to convert a single family home into a multi-family or vice-versa
- Want only one loan, with one closing for both the rehabilitation and purchase
financing - May not qualify for conventional financing
- Would like to avoid a second mortgage or HELOC for financing the cost of the
repairs - Would like to obtain financing based upon the “as completed” value of a home
- Would like to rehabilitate, repair or improve their condominium (The Condo
must be approved by FHA or FHA approvable - Talk to John about getting the
condo approved) - Expand your market reach
- Help people find affordable financing and realize the dream of homeownership
The FHA 203(k) Consultant Role:
Finally, John comes in as the consultant at the time of purchase to estimate (In
writing the “Work Write-up Report”) and verify all the costs associated with
improving the property. This must be performed in advance in order for the lender to
qualify the purchaser/borrower for the loan that now includes all of the
improvements that are either required or requested to be done. John will also be
performing various inspections throughout the construction process to assure
compliancy with HUD’s procedures/requirements until all work is 100%
completed. Please note that there is a fee charged (Allowable by FHA-See below
the allowable charges) to the borrower and is based upon the amount of
improvements to be performed on the property.
A FEE OF $450 IS CHARGED FOR REPAIRS LESS THAN $7,500
A FEE OF $550 - OR MORE MAY BE CHARGED FOR REPAIRS BETWEEN
$7,501-100,000
*Please ask to see if you qualify for a discounted fee*
Note: Termite inspection done upon request.
Fees subject to change pursuant to HUD’s requirements as outlined in HUD
Handbook 4905.1 or revised Mortgage Letter issued.
Note: Multi unit buildings require an additional $50 per unit which will be added to
the fees shown above.
Example: If a two-unit building needs $25,000 worth of work to be completed, the
fee would be as follows:
Work-Write-up (Includes Feasibility) $550
Multi unit (2 units x $50) + $100
Total = $650
These fees and all other requirements will be discussed in detail when you meet,
call or email John directly.
"Thank you and I look forward to serving you and your customers in the future."
| 203(k) SCHEDULE OF WORK WRITE-UP FEES |
Kitchen after a 203(k) Loan
| FHA 203(k) Program Highlights |