Construction Loan Information Georgetown Mortgage

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Benefits

  • Primary program for the rehabilitation and repair of a single family housing
  • Affordable and cost-effective financing for homes that require repairs
  • Affordable and cost-effective means for borrowers to finance desired repairs
  • Expand homeownership opportunities
  • Allows use of FHA or Conventional financing for properties that would otherwise be uninsurable
  • Increase property value (average 6% YTD)
  • Offers a proven solution to borrowers and realtor

Loan Product Information

  • Credit qualifying as core FHA
  • Two Options <$35,000 or >$35,000 in total rehabilitation
  • Loan amount based off of maximum county limits
  • Low credit Score requirements
  • Owner Occupied
  • Single Family Dwelling 1 unit
  • No Self-Help
  • Seller contributions are allowed per FHA guidelines
  • Value used is lesser of purchase price including TOTAL rehabilitation OR up to 110% of “After-Improved Value”

Limited Overview <$35,000 in total rehabilitation cost

  • Non Structural repairs with total rehabilitation cost at or below $35K
  • $5000 minimum rehab amount
  • No HUD Consultant required
  • Allowed to have up to 3 contractors with contractor approval required
  • 50/50 payout to contractor
    • Half of the contractor(s) bid will be paid within 3-5 days from closing and remaining funds will be disbursed once ALL renovation work has been completed

Eligible Repairs

  • Roof, gutters, downspouts
  • HVAC
  • Reconditioning or replacing plumbing/electrical
  • Flooring
  • Minor remodeling
  • Painting (interior, exterior and/or removal of lead-based paint)
  • Windows, doors
  • Appliances
  • Modifications for disabled homeowners but non structural
  • Exterior decks, patios, and porches
  • Installing a well and/or septic system
  • Fencing

Standard Overview >$35,000 in total rehabilitation cost

  • Structural repairs and/or total rehabilitation costs exceeding $35K
  • Minimum $5,000 in repairs
  • HUD Consultant required (generally paid upfront according to HUD’s recommended fee schedule)
  • NO Self-Help
  • A detailed bid prepared by 1 general contractor with GC providing a list of all subs being used
  • Maximum of 5 draws during rehab phase – draw schedule determined by contractor and HUD Consultant
  • 10% Contractor holdback from draws – Very important to communicate to the general contractor

Eligible Repairs

  • Major Rehab
  • Room additions
  • Structural repairs
  • Foundation repairs included depending on Engineers Report
  • Repairs requiring drawings, specs, and/or architectural exhibits
  • Landscaping, site amenity improvements – Concrete for sidewalks can be included in landscaping
  • Attached or detached garage
  • Tear down or rebuild as long as “existing” foundation is being used. **You can add to but never take away from the pre-existing slab**

Let's get started

Within a few minutes you will get personalized recommendation on your monthly payment and how much home you can afford.

|
OR
|

Talk to our experts

Fill out this short form and one of our Home Loan experts will contact you right away!
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