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FHA203k2022-11-10T15:36:59+00:00

Buying a House or Refinancing with a FHA203k or a Fannie Mae Homestyle Renovation Loan?

Look no further, we have been the experts in Connecticut for over 15 years.

We have certified specialists on our team to help you navigate:

  • The Hud Consultant

  • FHA mandatory Health and Safety Items

  • Lender Paperwork

Book Appointment

Don’t worry we know the turn around time needed for the whole process and have worked with all the major lenders and Hud Consultants in New England and Connecticut

What Our Clients are Saying about our FHA203ks and Homestyle Renovation Loan Projects

“I purchased my first home this year moving from NY to CT during the pandemic. The home needed TLC X’s 10 so I decided to get a 203K Loan. From the moment I was trying to narrow down a reputable contractor, Fine Home Contracting never disappointed! The role of your contractor is a pivotal point in the success on closing on your home. Paperwork has to be turned in very timely, yet done precisely! They called me back right away in the beginning; an issue with other contracting businesses. Kevin, my project manager, oversaw the entire project and I was able to do this with an App called “CoConstruct” which means you are watching your home be renovated by the day – I never had to leave NY – this was all done virtually! That trust was invaluable so it is worth every extra dollar you’re going to spend. If you are like myself who loves a great customer service orientated business – you will never second guess your decision to work with David & Tony, their entire team at Fine Home Contracting!”

Artavia G
“We hired Fine Home Contractng as the GC on a HUD home purchase and 203k renovation. We cannot be happier with our new home and all the work Dave from FHC did for us. They are true professionals and the workmanship is second to none. We are extremely happy with how they managed our project and expedited them to make sure we were ready to move in on time. These guys know the 203K renovation process and would highly recommend using them.”
J.S., Your Content Goes Here

Common Questions for FHA203ks and Homestyle Renovation Loans

What is a 203k Loan?2022-06-13T14:18:32+00:00

​The FHA 203k loan is a renovation or construction loan, that is backed by the Federal Housing Administration. Both buyers and refinancing customers can combine the traditional “home improvement” loan with a standard FHA mortgage, which allows the homeowners to borrow their renovation costs.

Limited 203k Loan Requirements2022-06-13T14:18:39+00:00
  • A Minimum Borrowed of $5,000 for repairs
  • A Maximum Borrowed of $35,000 for repairs- (this ends up to be around 30k for the renovation- for most lenders)
  • There is a Limited On Some Types Of Repairs. (structural)
  • A HUD Consultant Is Not Required But We Recommend It
Full 203k Loan Requirements2022-06-13T14:18:44+00:00
  • There Are No Limit On Repairs
  • Any Structural Work Is Allowed
  • A Minimum of $5,000 Borrowed For Repairs-
  • A Maximum 110% After The Appraised Value
  • A HUD Consultant Is Required
Some Common 203k Repairs2022-06-13T14:13:11+00:00
  • Remodeling of Kitchens & Bathrooms
  • Stabilizing Lead-Based Paint if detected
  • Installation of Roofs, Gutters, and Downspouts
  • Installation or repair Exterior Decks, Patios, Porches
  • Installation of New Windows, Doors and Siding
  • Remediation of Health and Safety Issues (Mold)
  • Installation or Repair of Plumbing, Well And/Or Septic System.
  • Installation of Fencing, Walkways, Driveways, and Landscaping
  • Installation of New Energy Efficient Heating Systems, and Electrical Service Upgrades
  • Replace Missing Or Stolen Pipes
What is a Homestyle Loan?2022-06-13T14:13:55+00:00

A Homestyle loan is a long-term financing option available to owner-occupied homeowners and buy-and-hold investors that can be used to purchase and renovate a primary residence. This permanent mortgage is backed by Fannie Mae, and typically funds between 65% – 95% of a property’s price and renovations. In order to have their renovation budget approved borrowers must submit a detailed list of repairs, 2-3 licensed contractor bids from approved contractors, and a licensed contractor to oversee the renovations.

Homestyle Loan Requirements2022-06-13T14:14:22+00:00
  • 50% Debt-to-Income Ratio
  • 640 Min. Credit Score
  • 2 Recent Paystubs
  • List of Total Assets
  • List of Total Debts
  • Mortgage Insurance
  • Independent Appraisal
Common Homestyle Loan Renovations2022-06-13T14:14:54+00:00
  • Installing new flooring
  • Removing a load-bearing wall
  • Installing solar panels
  • Plumbing and electrical updates or repairs
FHA 203k / Homestyle Process2022-06-13T14:16:00+00:00
  1. Buyer Finds a House:
    The process starts with a buyer finding a house that “just needs something” or may require certain items to be fixed before it can be eligible for financing.
  2. Mandatory Repair Items:
    For limited 203ks a home inspection is accepted. However, for 203k (35k++) you need a HUD Consultant. The deficient items on the report will need to be repaired to be eligible for financing (typically these are health and safety).
  3. Wish List (kitchens etc.):
    Next, the contractor reviews the property, goes over the mandatory repair list and adds WISH LIST items.
  4. Contractor Quote:
    Each line item of work that needs to be done must be itemized with materials and labor costs separated.
  5. Packet to Lender:
    A packet will be sent to the lender including the consultant write-up, contractor write-up, contracts, permits required, contractor resume, W2, License, and Insurance information.
  6. Appraisal:
    Since the appraisal may uncover additional deficiencies, it is important that the original inspection and work write up includes everything. Renovation costs are added to the value of the house (with certain restrictions).
  7. Lender Processing:
    At this point in the process the inspection report, appraisal, and write-ups will be processed and verified. These documents all need to contain the same mandatory repair list.
  8. Closing:
    Buyers should be aware that closing can sometimes be delayed, so they may need to wait until work is completed before they can move in.
  9. Work Starts:
    HUD wants work to start in 30 days, but permits will need to be issued which usually takes 1-2 weeks
  10. Progress Inspection:
    The HUD consultant will make routine progress inspections and submit draws to the lender who will then issue payment to the contractor.
  11. Move In:
    You are now all set to move in!

Want to do a deep dive into renovation loans. Order President and Founder David Perrotti’s Book

Do you want to turn an old house into your home? Perhaps you love the house’s historic feel but dream about making it “your own” with restorations and cosmetic updates. You probably have many questions and fears, such as…

  • Is renovation right for me?

  • Will it be costly and complicated?

  • Am I capable of hiring a large team and helping to make decisions about the home of my dreams?

  • Will the project be over budget, over schedule, and ultimately, a money pit?

Buy the Book

Don’t allow these fears to hold you back from the gratifying experience of renovating your home into a place for you and your family to grow and thrive for years to come. Renovation lending is the most straightforward, cost-effective path to reach your final goal. Allow me to guide you through the process from start to finish as we discuss loan options, choosing the right team of professionals, and what to expect along the way. I’ll discuss common mistakes and things to avoid to save you valuable time and energy.


Do We Remodel in Your Area?

Fine Home Contracting remodels homes in the entire state of Connecticut. Reach out for a consultation on your project today.

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