RenovationReady® was able to answer all the questions I had about 203K loans and even connected me with a 203K lender.
Many government-sponsored real estate projects involve HUD's Minimum Property Standards, and 203k loans are no different. The property standards are listed in a document that some homeowners might feel they need a law degree to decipher. RenovationReady®'s consultants have the experience to guide homeowners through this overwhelming list, and make sure that any new additions to a home involved in a 203k loan meet all of these requirements.
As noted by Investopedia, HUD's Minimum Property Standards address three main areas: occupants' safety, loaners' security and a building's soundness. The standards were written with an eye toward ensuring that the homes retain their value. The federal agencies want to protect their investment - and yours.
Renovations, including adding additional rooms to the home that are allowed under 203k loan agreements, must meet local building codes and requirements. But those local laws vary greatly. Some Texas cities have virtually no zoning, for example, and relatively few lot-use requirements, while some New York villages specify fencing and deck measurements. In this case, HUD's Minimum Property Standards levels the field for additions allowed by 203k loans, ensuring that the local and state requirements are acceptable.
That's just the tip of the requirements. The Minimum Property Standards touch on electric, plumbing, even drainage. The 203k loans allow for homeowners to do some of the work themselves, but that work must still meet all of the standards and requirements. This is one of the areas that RenovationReady® can offer knowledgeable guidance.