Need Money For Home Rehab? – Details on GA Rehab Loan Programs

Money For RehabNeed Money For Home Rehab? – Details on GA Rehab Loan Programs

There’s a few programs out there for home rehabbing but usually there’s a lot of red tape.   I wanted to give you a bullet pointed list just in case you need money for home rehab.

FHA 203(k) Streamline

  • Up to $35,000 of home rehab can be financed into loan to be completed after closing
  • Non-structural and non-luxury improvements are permitted
  • Appraisal is based on as-is value plus the proposed improvements
  • Licensed General Contractor required
  • Work must be completed within 90 days after closing
  • Primary residences only
  • Purchases and Refinances allowed

FHA 203(b) with Repair Escrow

  • Up to $5,000 can be financed into loan for repairs identified by HUD to be completed after closing
  • Limited to HUD REOs only
  • $100 down payment allowed
  • General Contractor Required
  • Home Rehab must be completed within 15 days after closing

Repair Escrow Program

  • Allowed on Conventional, FHA, and VA financing (not USDA)
  • Up to $5,000 can be escrowed for repairs to be completed after closing
  • Repair cost cannot be financed into loan (seller or buyer must contribute)
  • Can be used when seller offers an allowance for repairs or improvements to be completed after closing
  • Can be used when appraisal repairs are required but seller or REO bank won’t do them prior to closing (i.e. HVAC not working, hot water heater missing, carpet/flooring is missing, etc)

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