Eligibility
- Total purchase cost and rehabilitation costs must not exceed FHA Maximum Loan Limits.
- You will be required to have a construction contract with a state-licensed general contractor.
Not sure what kinds of renovations our loans cover?
Here are just a few:
o Electrical
o HVAC systems
o New appliances
o Roofs
o HVAC systems
o New appliances
o Roofs
o Health and safety standards
o Sewer hookup
o Well and septic systems
o Sewer hookup
o Well and septic systems
o Any repairs that are structural in nature,
or in excess of $35,000, will be
considered under the Standard 203(k)
Rehabilitation program.
or in excess of $35,000, will be
considered under the Standard 203(k)
Rehabilitation program.
Additional Considerations
- 203(k) applicants are required to complete a FHA 203(k) Homebuyer Education class prior to closing. The class is offered online for a $15 fee.
- After closing, the funds for home repairs will be held by RIHousing in an escrow account. RIHousing will disperse payments to the contractor and manage a contingency reserve of up to 20% of the rehabilitation costs. Unused funds will be applied to the principal balance of your loan.
