Monthly Archives: September 2012

FHA 203(k) Loan on work to be done

If you’re looking at a fixer-upper or a fixing up your current home, the Federal Housing Administration rehab loan may be the mortgage for you.The Federal Housing Administration’s rehab loan product, the FHA 203(k) loan, was designed for individuals who want to rehabilitate or repair a damaged home so they can live in it as their primary residence.

There are two types of FHA 203(k) mortgages: regular and streamlined (also called “modified”). Regular 203(k)s are for properties that need structural repairs; streamlined are for those that need only non-structural repairs. Either can be used for purchase or refinance.

The FHA 203(k) loan lets you include the money needed for repairs and related expenses in the loan, such as materials and labor. If you wanted to buy a home in which the kitchen had been ripped out, you could include in the loan the price of new cabinets, counter tops, flooring, a fridge, stove, oven, microwave, sink, dishwasher, garbage disposal, and the cost to design, permit and install it all. The loan can also include a 10-20% contingency reserve for expenses above and beyond your repair estimates. You can also get up to six months’ worth of mortgage payments included to cover the mortgage while you’re renovating the home, so that you won’t have to make a double housing payment.

According to the FHA, “All persons who can make the monthly mortgage payments are eligible to apply” for a 203(k) loan. To find a lender in your area who is experienced with FHA 203(k) mortgages, use the search tool at and check the box for 203(k).

And you’ll need a builder also who is approved to do 203(k) work and Pavolony Construction has done them in the past so we understand the paperwork and payment schedule that goes with this type of loan.




Timing is everything especially in education

We are currently working on discovering the origin of a leak in a brick wall at a window for a customer. It has become a not-so easy fix. This month’s issue of JLC, The Journal of Light Construction has a timely article concerning this very same problem. The article by Harrison McCampbell is well written…Continue Reading