BRAND NEW!!! USDA RENOVATION LOAN!!!
Allows borrowers to finance the cost of repairs to improve an existing dwelling at the time of purchase. The maximum loan amount cannot exceed the cost of acquisition plus the cost of repairs up to the as-improved market value, plus the guarantee fee, if financed.
The borrower obtains one loan at a fixed interest rate to finance both the acquisition and the rehabilitation of the property. The loan is guaranteed after the loan has closed, prior to the completion of repairs which minimized the risk to the lender. There is no minimum repair cost for non-structural repairs. Repairs above $35,000 require a HUD Consultant.
This program is only available o a owner occupied, PURCHASE. transaction.
Property must be an existing Property that has been completed for at least one year. New construction or incomplete construction are not eligible. Evidence of completion such as a Certificate of Occupancy or documentation from local taxing entities is acceptable. All health and safety or security issues must be part of the rehabilitation or repair work performed.
The Borrower’s adjusted income may not exceed the Rural Development limit for the area. Check these restrictions first:
Income Eligibility
Income Limits
Property Eligibility
Repairs up to $35,000 must be non-structural, and home must be considered habitable at the time of closing.
Repairs exceeding $35,000 may be structural or non-structural. If the dwelling is not habitable at the time of closing, reserves for principal, interest, taxes and insurance may be established to cover the mortgage payments for up to 6 months as determined by the HUD consultant.
Eligible Repairs:
• Removing safety and health hazards; • Making the dwelling accessible to persons with disabilities; • Repair or installation of septic system and water wells; • Additions or structural alterations; • Modernization (kitchens and bathrooms, interior floor cover, exterior siding, etc.); • Installation of energy conservation or weatherization features; • Repairs to existing swimming pools, hot tubs, or saunas; and • Repairs to accessory dwelling units.
Ineligible Repairs:
• Installation of new inground swimming pools, hot tubs, or saunas; • Repairs to new or existing manufactured homes; • Repairs to condominiums; • Converting structures to SFH dwellings (barns, schoolhouses, etc.); • Alterations that allow income-producing features; • Installation of luxury items (exterior fireplaces and kitchens, etc.); and • Repairs or improvements to common space areas (community meeting rooms, playgrounds, etc.) • Any repair/removal/remediation of Oil Tanks • Tear downs to foundation and rebuilds are not permitted
Ineligible repairs for transactions below $35,000 (Limited Transaction) • Structural Modifications • Any repair/removal/remediation of Oil Tanks • Any repair/installation for private water systems (Wells) • Any repair/installation for private waste management systems (septic systems, lagoons, cesspools, pits, etc.) • Mold remediation
Construction soft costs:
Other reasonable and customary closing costs are allowable as defined in HB chapter 6, as long as the costs do not exceed the maximum LTV as described in HB 3555 chapter 7. • Appraisal fees • Inspection fees • Survey • Permits • Plan review fees • Architecture or design fees • Engineering fees • Title updates • Lender construction administration fees • Contingency reserve • Interest reserve including interest as accrued • PITI reserve • Project review fees • Builder acceptance or review fees
Contact one of our Renovation Specialists by calling 540-424-5700 today!
The borrower obtains one loan at a fixed interest rate to finance both the acquisition and the rehabilitation of the property. The loan is guaranteed after the loan has closed, prior to the completion of repairs which minimized the risk to the lender. There is no minimum repair cost for non-structural repairs. Repairs above $35,000 require a HUD Consultant.
This program is only available o a owner occupied, PURCHASE. transaction.
Property must be an existing Property that has been completed for at least one year. New construction or incomplete construction are not eligible. Evidence of completion such as a Certificate of Occupancy or documentation from local taxing entities is acceptable. All health and safety or security issues must be part of the rehabilitation or repair work performed.
The Borrower’s adjusted income may not exceed the Rural Development limit for the area. Check these restrictions first:
Income Eligibility
Income Limits
Property Eligibility
Repairs up to $35,000 must be non-structural, and home must be considered habitable at the time of closing.
Repairs exceeding $35,000 may be structural or non-structural. If the dwelling is not habitable at the time of closing, reserves for principal, interest, taxes and insurance may be established to cover the mortgage payments for up to 6 months as determined by the HUD consultant.
Eligible Repairs:
• Removing safety and health hazards; • Making the dwelling accessible to persons with disabilities; • Repair or installation of septic system and water wells; • Additions or structural alterations; • Modernization (kitchens and bathrooms, interior floor cover, exterior siding, etc.); • Installation of energy conservation or weatherization features; • Repairs to existing swimming pools, hot tubs, or saunas; and • Repairs to accessory dwelling units.
Ineligible Repairs:
• Installation of new inground swimming pools, hot tubs, or saunas; • Repairs to new or existing manufactured homes; • Repairs to condominiums; • Converting structures to SFH dwellings (barns, schoolhouses, etc.); • Alterations that allow income-producing features; • Installation of luxury items (exterior fireplaces and kitchens, etc.); and • Repairs or improvements to common space areas (community meeting rooms, playgrounds, etc.) • Any repair/removal/remediation of Oil Tanks • Tear downs to foundation and rebuilds are not permitted
Ineligible repairs for transactions below $35,000 (Limited Transaction) • Structural Modifications • Any repair/removal/remediation of Oil Tanks • Any repair/installation for private water systems (Wells) • Any repair/installation for private waste management systems (septic systems, lagoons, cesspools, pits, etc.) • Mold remediation
Construction soft costs:
Other reasonable and customary closing costs are allowable as defined in HB chapter 6, as long as the costs do not exceed the maximum LTV as described in HB 3555 chapter 7. • Appraisal fees • Inspection fees • Survey • Permits • Plan review fees • Architecture or design fees • Engineering fees • Title updates • Lender construction administration fees • Contingency reserve • Interest reserve including interest as accrued • PITI reserve • Project review fees • Builder acceptance or review fees
Contact one of our Renovation Specialists by calling 540-424-5700 today!
