Homes that have never been completed cannot be accepted into the 203K program; construction of the property must have been completed for at least one year. Evidence of completion would be a Certificate of Occupancy or other similar documentation from the local jurisdiction.
Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided the existing foundation system is not affected and will still be used. The complete foundation system must remain in place. A report from a licensed structural engineer is required stating that the existing foundation is structurally sound and capable of supporting the proposed construction of the dwelling. Where the home has been completely razed (or where only the footings remain), including the demolition of the foundation, the property is not eligible for a 203K insured loan. If you have any property-related questions, why not try this out and get the best solution for the same!
In addition to typical home rehabilitation projects, this program can be used to convert a one family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one-to-four family unit.
An existing house on another site can be moved onto the mortgage property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation. Any doubt regarding a property should be cleared with the help of experts, or click this link here now as property management involves a lot of complications.
Eligible FHA 203k Properties:
One to four-family dwelling that has been completed greater than one year.
- Purchase or refinance
- Condemned properties
- REO properties
- Condominiums in projects that have been approved by FHA (Interiors only)
- Mixed use (business-no more than 25% for one floor properties, 49% for 2 floor properties, or 3% for 3 story)
- Non-residential conversions to single family (1-4 units)
Properties Ineligible For 203k Loans:
- Log Homes
- Manufactured Homes