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  • On a FHA 203K or HomePath Renovation loan, what happens if there are leftover funds after the work is complete? Generally, there will not be remaining funds because the contractor provides a detailed line-item Scope of Work. However, on all renovation loans we collect 10-20% contingency funds in the case something comes up that must be addressed for health or safety concerns. If the funds are NOT needed there are two options: apply the balance to pay down the principal balance of the loan or use the funds for additional items on the home. If one or more utilities cannot be confirmed as operable then we will collect at least 15% contingency regardless.

Example - Cost of repairs: $15,000 - Contingency Funds - $1,500

  • What if a property requires repairs for financing but the buyer does not want to finance the additional money? Since a renovation loan is one transaction all the buyer would have to do is increase his/her down payment so the loan amount would not increase.
      Sales price - $150,000 + $10,000 roof = $160,000
      20% down payment = $32,000
      Down payment so Roof is NOT financed - $42,000
  • What is the minimum credit score for a Fannie Mae HomePath or HomePath Renovation loan?
    HomePath - LTV greater than 80% - 660 and auto approve in desktop underwriting (DU); LTV less than 80% determined by DU but generally 620.
    HomePath Renovation - LTV greater than 80% - 660 and auto approve in desktop underwriting (DU); LTV less than 80% determined by DU but generally 620.
  • Do FHA 203K or Conventional Renovation loans require certain inspections?
    NO. Like any property we encourage the buyer to get a home inspection for his/her best interest and its best practice to have an inspection done. However, its not mandatory. Generally, a home inspection / WDO inspection will help direct us to know exactly what repairs NEED to be addressed so the home will meet HUD's minimum property standards. That is where our expertise in renovation loans can help everyone save time and money. In addition, we have a FHA consultant who can do a Feasibility Inspection for $150 which will tell us exactly what must be addressed on the Scope of Work. 
    Click here for Sample Feasibility Inspection.
Typical Inspections

FHA Feasibility Inspections - helps figure out exactly what MUST be addressed on the property to meet HUD minimum property standards

Home Inspections - encouraged but not required

WDO Inspections - encouraged but not always required
Well / Septic Inspections - if house is vacant 30 days; not working
Specialty Inspections
Structural Engineer, Lead-based paint, Roof, Mold, Pool, etc.
Renovation Inspections/Write ups
FHA Consultant - Creates FHA Scope of Repairs document with contractor

Conventional - 3rd-Party inspections & Feasibility Report


FHA 203K & HomePath Renovation Loans

You Close Now...We'll Renovate Later

Jamie Zeitz | Florida Renovation Manager

Certified FHA 203K Renovation Specialist

Real Estate Mortgage Network, Inc.

4651 Salisbury Rd. Suite 411

Jacksonville, FL 32256

P: 904-316-7905 | F: 866-233-0890 | NMLSR#: 595812


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