I am looking for a final accurate answer.. true or false? - Can you do your OWN renovations for your home using 203k Loan funds? Some say no, some speak yes. I was told yes , as long as your qualified to do such.. you won't get hold of funds upfront , you'll be reimbursed and you have to follow the time frame guidelines. Does anyone know the physical answer? Thanks!
Answers: Yes, as long as qualified to do so. They will be inspected by the 203K approved inspector after completed. If they do not pass & be performed by the home owner, HUD or the inspector may require a professional contractor come variety the repairs code compliant. This is why you are not allowed to exclude labor costs from bids you make a purchase of.
From HUD: http://www.hud.gov/offices/hsg/sfh/203k/...
C. Work Write-up and Cost Estimate. Any format may be used for these documents, however, quantity and the cost of respectively item must be shown. Also include a complete description of the work for each item (where necessary). The Rehabilitation Checklist within Appendix 1 of Handbook 4240.4 REV-2 should be used to ensure all work items are considered. Transfer the costs to the Draw Request (form HUD-9746-A).
Cost estimates must include labor and materials sufficient to complete the work by a contractor. Homebuyers doing their own work cannot get rid of the cost estimate for labor, because if they cannot complete the work there must be enough money in the escrow explanation to get a subcontractor to do the work. The Work Write-up does not call for to reflect the color or specific model numbers of appliances, bathroom fixtures, carpeting, etc., unless they are nonstandard unit.
Additionally fro HUD: http://209.85.173.104/search?q=cache:8K5... (Halfway down the page)
Acceptance of Contractors and Rehabilitation Criteria
The mortgagor must use the services of one or more contractors to complete the repairs. Mortgagees may not approve “self-help” arrangements in which the mortgagor is performing the work, unless the mortgagor can sufficiently demonstrate to the mortgagee that he or she have the necessary expertise and experience to competently make the work (i.e., mortgagor is an electrician and will perform electrical repairs/upgrades to the property securing the mortgage loan). Such “self-help” arrangements are strongly discouraged unless the mortgagor’s capacity to competently perform the work contained by a timely and workmanlike manner is manifest and easily documented.
Never hear of 200k+ renovation/refurb loan after the event, unless it is a credit from the refurb contractor. One does not buy a property/asset with one's own money, and afterwards go to the lender for full amount.
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Answers: Yes, as long as qualified to do so. They will be inspected by the 203K approved inspector after completed. If they do not pass & be performed by the home owner, HUD or the inspector may require a professional contractor come variety the repairs code compliant. This is why you are not allowed to exclude labor costs from bids you make a purchase of.
From HUD: http://www.hud.gov/offices/hsg/sfh/203k/...
C. Work Write-up and Cost Estimate. Any format may be used for these documents, however, quantity and the cost of respectively item must be shown. Also include a complete description of the work for each item (where necessary). The Rehabilitation Checklist within Appendix 1 of Handbook 4240.4 REV-2 should be used to ensure all work items are considered. Transfer the costs to the Draw Request (form HUD-9746-A).
Cost estimates must include labor and materials sufficient to complete the work by a contractor. Homebuyers doing their own work cannot get rid of the cost estimate for labor, because if they cannot complete the work there must be enough money in the escrow explanation to get a subcontractor to do the work. The Work Write-up does not call for to reflect the color or specific model numbers of appliances, bathroom fixtures, carpeting, etc., unless they are nonstandard unit.
Additionally fro HUD: http://209.85.173.104/search?q=cache:8K5... (Halfway down the page)
Acceptance of Contractors and Rehabilitation Criteria
The mortgagor must use the services of one or more contractors to complete the repairs. Mortgagees may not approve “self-help” arrangements in which the mortgagor is performing the work, unless the mortgagor can sufficiently demonstrate to the mortgagee that he or she have the necessary expertise and experience to competently make the work (i.e., mortgagor is an electrician and will perform electrical repairs/upgrades to the property securing the mortgage loan). Such “self-help” arrangements are strongly discouraged unless the mortgagor’s capacity to competently perform the work contained by a timely and workmanlike manner is manifest and easily documented.
I am surrounded by the middle of developing a realtor rating website. Tell me what you believe?
Never hear of 200k+ renovation/refurb loan after the event, unless it is a credit from the refurb contractor. One does not buy a property/asset with one's own money, and afterwards go to the lender for full amount.
Resolved Questions: