Comparing Renovation Loan Options
| LIMITED 203K | STANDARD 203K | HOMESTYLE | |
| EXAMPLES OF ELIGIBLE REPAIRS |
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| DOWN PAYMENT AND LOAN-TO-VALUE (LTV)* | 3.5% (96.5% LTV) | 3.5% (96.5% LTV) | 1-Unit Primary: 3% (97% LTV) [At least one borrower must be a fi rst-time homebuyer] 1-Unit Primary: 5% (95% LTV) 1-Unit Second Home: 10% (90% LTV) 1-Unit Investment: 15% (85% LTV) Mortgage Insurance (MI) is required for any LTV that exceeds 80%. |
| ELIGIBLE PROPERTY TYPES |
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| ELIGIBLE OCCUPANCY TYPES | Primary | Primary | Primary, Secondary, Investment |
| NUMBER OF DRAWS | 1 initial and 1 final draw per contractor | Up to 5 draws | Up to 5 draws |
| ADVANCES | Up to 50% of repair cost can be distributed at closing when requested in writing prior to close. | Not allowed | Not allowed |
| MATERIALS DRAWS | Not allowed | Not allowed | Case by case, up to 50% of total materials budget, based on need |
| PROOF OF PERMITS | Required within 30 days of loan closing | Required on or before first draw | Required on or before first draw |
| HOLDBACKS | No holdbacks on draws | 10% holdback on all draws, except final draw | 10% holdback paid out with final draw |
| CONTINGENCY FUNDS AND CHANGES TO SCOPE OF WORK | Contingency funds are intended for unforeseen repairs. Once all items on the bid are completed, contingency funds may be used for additional repairs or applied as a principal reduction. | ||
| COMPLETION DATE | Work must begin within 30 days of loan closing, may not cease for any 30 consecutive day period and must be completed within six months of loan closing. |
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