Pursuing an FHA 203(k) loan enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.
The extent of the rehabilitation covered by a 203(k) may range from relatively minor (minimum of $5000 in cost) to virtual reconstruction: a home that has been demolished or will be restored as part of rehabilitation is eligible.
Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one-to-four unit structure.
The types of improvements that borrowers may make using Section 203(k) financing include:
- Structural alterations and reconstruction
- Modernization and improvements to the home's function
- Elimination of health and safety hazards
- Changes that improve appearance and eliminate obsolescence
- Reconditioning or replacing plumbing; installing a well and/or septic system
- Adding or replacing roofing, gutters, and downspouts
- Adding or replacing floors and/or floor treatments
- Major landscape work and site improvements
- Enhancing accessibility for a disabled person
- Making energy conservation improvements
Advanced Restoration Corporation is located in New York and is a general contractor/ restoration company that specializes in the rehabilitation of homes in disrepair. We are affiliated with various mortgage companies and have experience with contractor requirements associated with a 203 (k) loan.
For more information on partnering with an experienced company ready to rebuild your dream house, contact Gary Matzelle at (516)903-4107. Service area includes: Nassau County, Suffolk County, Queens, Manhattan, Staten Island, Brooklyn and The Bronx.