1. Presented By: Wanda T. Lindstrand 4757 Highway 17 Bypass ∙ Myrtle Beach, SC 29577 What You Need to Know About… FHA 203(k) Rehabilitation Loans

2. This is a loan insured by the Federal Housing Administration and designed for the repair or renovation of existing homes in a purchase or refinance transaction. What is an FHA 203(k) Loan?

3. Types of FHA 203(k) Rehab Loans FHA Streamline 203(k): Allows for the purchase or refinance of a home that needs minor repairs or rehabilitation up to a maximum loan amount of $35,000 in repair cost. FHA 203(k): Allows for the purchase or refinance of a home that needs major rehabilitation or structural repairs. Minimum loan amount $5,000 up to FHA’s maximum county loan limits.

4. Improvements Allowed Structural Alterations & Additions HVAC, Electrical, Plumbing Well/Septic Systems Termite/Moisture Damage Roof, Gutter, Downspouts Kitchen & Bathroom Remodeling Flooring, Tiling, Carpeting

5. Improvements Allowed Interior/Exterior Painting Interior/Exterior Lighting Appliances Siding, Windows, Doors, Trim Work Foundation Repair Decks, Patios, Porches Driveways, Walkways, Retaining Walls, Fences

6. Improvements Not Allowed Improvements not Permanently Attached Improvements for Business or Commercial Landscaping: sod, trees, shrubbery Luxury Items: Pools, Hot Tubs, Saunas, Gazebo’s, Barbecue Pits

7. Eligible Property Types SFR (attached or detached) 2-4 Unit Multi-Family Town House FHA approved Condo Modular Manufactured

8. FHA 203(k) Rehab Loan Benefits Perfect for foreclosures, short sales, & HUD REO properties Appraisal states repairs needed prior to closing

9. FHA 203(k) Rehab Process Borrower Signs Contract Borrower gets itemized repair cost estimate from a licensed general contractor. Borrower hires a FHA approved HUD Consultant HUD Consultant & General Contractor review & agree on work & estimate of repair cost. Borrower’s loan amount is determined based on total cost of repairs.

10. FHA 203(k) Rehab Process Borrower’s loan submitted to underwriting. Appraisal ordered & repair cost estimate & HUD Consultant’s report submitted to appraiser. Appraisal Received & loan amount adjusted if necessary based on value. Close loan

11. FHA 203(k) Rehab Process Initial Draw to General Contractor to Start Construction Final Inspection once construction completed Final Draw to General Contractor Residual funds applied to principal balance of loan.

12. Property Requirements Primary Residence Only Existing home at least 1 yr old Can only have 1 FHA loan; FHA will not insure more than one mortgage Pest Inspection Well Water Test Required on Home with Private Well.

13. Statutory Limit Maximum loan limit set by FHA which varies by county and municipality throughout the country. Subject to change at any time Higher for multi-family dwellings Limits are available at: https://entp.hud.gov/idapp/html/hicostlook.cfm https://entp.hud.gov/idapp/html/hicostlook.cfm

14. Maximum Loan Limit Chart Horry County 1-Unit2-Unit3-Unit4-unit Loan Amount 286,250$366,450$442,950$550,450 Maximum mortgage limits based on the county and state of the subject property.

15. FHA Loan Limits https://entp.hud.gov/idapp/html/hicostlook.cfm https://entp.hud.gov/idapp/html/hicostlook.cfm FHA Approved Condos https://entp.hud.gov/idapp/html/condlook.cfm https://entp.hud.gov/idapp/html/condlook.cfm FHA HUD Homes http://www.hudhomestore.com/Home/Index.aspx http://www.hudhomestore.com/Home/Index.aspx FHA Web-sites