Need 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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