Reno Renovation has worked closely with home buyers and homeowners to facilitate their 203(k) loan experience by repairing, improving and/or upgrading their home. A 203(k) loan helps owners and buyers finance or re-finance up to $35,000 into their mortgage for these repairs and improvements. Reno Renovation Works closely with homeowners, home buyers and the consultant assigned by the Housing and Urban Development (HUD) department that will inspect the repairs.
Types of Repairs or Improvements under a 203(k) Loan
A 203(k) loan approval may range from $5,000 to $35,000. It is important to use the money wisely and be aware of what is eligible under the 203(k) loan. According to the Department of Housing and Urban Development, the type of improvements that borrowers may make include:
- structural alterations and reconstruction
- modernization and improvements to the home's function
- elimination of health and safety hazards
- changes that improve appearance and eliminate obsolescence
- reconditioning or replacing plumbing; installing a well and/or septic system
- adding or replacing roofing, gutters, and downspouts
- adding or replacing floors and/or floor treatments
- major landscape work and site improvements
- enhancing accessibility for a disabled person
- making energy conservation improvements
HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards.
Once your loan is approved for the above-referenced intended repairs, contact Reno Renovation for a free quote. The Department of Housing and Urban Development requires that a professional licensed general contractor perform the job. Do it yourself repairs do not qualify. You cannot use the loan to buy the material and do it yourself. A consultant that is HUD approved is required to oversee the use of the loan. The consultant will also verify that the general contractor is licensed. Reno Renovation has experience working with HUD approved 203(k) consultants.
It is very important that 203(k) borrowers work with a contractor who is knowledgeable of the 203(k) rules and guidelines of the steps involved. This is important because you do not want to be held responsible for paying repairs that lie outside of eligible repairs or improvements.
Hire an Experienced 203(k) Loan General Contractor
Reno Renovation has handled multiple 203(k) Rehabilitation throughout Chicago and the surrounding suburbs like Naperville, Schaumburg and Elgin. Referrals are available upon request. You can speak with one of our former clients so that you can rest assured that the seamless experience we advocate is true. Reno Renovation works with you and the HUD consultant to make sure all repairs are made within inspection standards. We issue 203(k) lien waivers to both the borrower and lender. We also provide our standard 1-year warranty for work performed that is transferrable to subsequent owners within that 1-year warranty.