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If a homeowner doesn’t have enough equity in their home in order to provide local roofer financing, then the FHA 203(k) loan could prove useful. The FHA-authorized lenders can only offer the mortgages in order to provide mortgage financing for home repairs or to purchase brand new residences. Customers can apply for the fixed and adjustable rate loans. Two types of 203(k), loans are offered: regular and limited. The 203(k) loan, which is a limited one, is available for repairs as high as $35,000. It could be used to fund a variety of roofing projects. Imagine a roof that is seriously damaged or in need of major repairs. Homeowners who want to find the most effective way to finance for a roofing project and any other structural renovations besides the new roof can choose an ordinary 203(k) credit. It allows the borrowers to choose to either take out the entire amount of their house’s value including renovation expenses or 110% of their estimated home value once renovations are completed.

If you opt for the standard 203(k), you must collaborate with an FHA-certified 203(k) specialist to act as the intermediary between yourself, the roofing contractor, as well as the lending institution. The consultant develops a program of the work you will need to complete, assures you that the project is in compliance with the proper standards, and also authorizes release to residential roofers or other contractors. The cost of developing job specifications for Federal Housing Administration-authorized consultants can be $400 for any repairs costing $7,500 or less. For tasks exceeding $100k, they might make up to $1,000. Consultants are often charged extra fees for inspections done during different phases of the project. Customers with a credit score of 580 or more are eligible to receive the 3.5 percent average amount of deposit needed for a mortgage under 203(k).

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