FHA 203K Streamline Renovation loans in KY

general information on the 203k

Intended to assist homeowners with basic repairs and modernize home.
Can finance up to $35,000 including reserves, etc.
Repairs must begin within 30 days of close & be completed within 6 months.
Property must be existing structure and completed at least l year.
Owner-occupied; one to four unit properties permitted.
Log homes, manufactured homes, or homes less than 1 year old are permitted.
No improvements to detached structures or luxury items.
The property must appraise to cover price plus repair and rehab cost.
May finance 96.5% of price plus 100% of repairs and rehab, up to 110% of "As Completed" Value.
FHA does not require a contingency reserve. At the lender's discretion, reserves of the total renovation costs can be mandated to allow for cost overruns. The reserves are part of your total $35,000.
Finance inspections, 203k title updates, and required working permits are allowed in this cost.

Try to use a contractor that will handle all the work and invoices. A General contractor is not required, but makes the process easier.
Borrower selects contractor not the lender.
Contractor must provide estimate for work to be done.
Contractor must provide licensed and carry E&O insurance.

Two-party checks to Borrower(s) AND each Contractor.
The first payment of renovation cost is at closing.
The balance of costs will be released upon completion of all work, inspection by appraiser and title updates.
Inspection is coordinated between Investor and Borrower.
Any excess funds will be applied to principal balance of borrower’s loan.