The specification of repairs (SOR) is the first step in the process of determining if the existing dwelling you want to purchase actually qualifies. A HUD consultant creates a Specification of Repairs (SOR) after (It is important to remember that the FHA k is based upon the after. List of repairs and improvements that can be financed using the FHA k streamline FHA Consultant to develop a “Specification of Repairs/Work Write- Up”.

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Major landscape work and site improvements, such as patios, decks, and terraces that improve the value of the property equal to the dollar amount spent on the improvements or repairz to preserve the property from erosion. HUD k Specification of Repairs — Easy k Professional When applying for a HUD k loan, a k Consultant or Homebuyer will need to submit a work write-up which lists in detail all of the labor and materials for completing the rehabilitation project.

You can work closely with your lender to find the right contractor, especially if you choose a lender that is well experienced with K loans. Here is a link to an example of a Specification of Repairs as generated by Easy k Professional: Improved accessibility to a disabled person, such as remodeling kitchens and baths for wheelchair access, lowering kitchen cabinets, installing wider doors, and exterior ramps.

Use our FHA k loan calculator to determine: Leave a Reply Cancel reply Your email address will not be published. Mandatory repairs — These are the repairs that need to be done in order to make the home safe to live in on a daily basis. If your 023k contractor bid rather low costs for your project and you agreed, you are stuck with those prices.

Select Maryland Pennsylvania Virginia. When the work is being paid from the proceeds of the K loan, however, you should be more careful. In general, the Specification of Repairs is completed in its standard format and does not create any problems for potential homeowners.

Understanding the Specification of Repairs (SOR)

One problem that many people run into with the K loan is finding a contractor that charges off market value of any repairs that are being included in the K loan. Recommended repairs — These repairs are typically recommended by the HUD consultant. Of the 2 types of loans, the streamline K is the most commonly requested and oc. Streamline or Full k. The repairs that are to be completed are split into 3 categories:.


Understanding what is on your SOR, what needs to be completed and what they should cost is a large part of the battle that you will face as you try to get your project completed within the parameters of the K loan. In the case of a Standard k project, a FHA qualified k Consultant will be required to manage the collection and submission of documents to the lender as well as dispersing of funds.

Only 1 to 4 unit buildings qualify for this type of loan.

HUD 203(k) Specification Of Repairs Example

When you are trying to secure a k loanyou will need to work with a k consultant. The results of this write-up determines not only if the dwelling qualifies for a 203j loan but also whether it qualifies for a regular K loan or a streamline K loan.

With a K loan both the individual s looking to make the purchase of an existing dwelling and the existing dwelling itself specfication meet specific qualifications. We are not the government.

These repairs are non-negotiable; they need to be completed in order to obtain the mortgage. Get a free quote and get started today. We may share customer information with our trusted affiliates to assist you with your home purchase. Other Renovation Loan Options. Justin McHood is America’s Mortgage Commentator and has been providing mortgage commentary for over 10 years on many of the nation’s leading financial websites.

There is no such certification. As we all know, contract work can fall through, which would leave you repaits the lurches to find another contractor. Skip to content HUD k Specification of Repairs — Easy k Professional When applying for a HUD k loan, a k Consultant or Homebuyer will need to submit a work write-up which lists in detail all of the labor and materials for completing the rehabilitation project.

Search Search the site If the project is a Streamlined kthe homebuyer can reairs the project themselves; however, it is highly advised they seek the assistance of a k Consultant.

Changes for aesthetic appeal and elimination of obsolescence such as new exterior siding, adding a second story to the property, covered porch, stair railings, attached carport. The specification of approval assists greatly in the process of coordinating what repairs and renovations need to be made to a dwelling with the potential buyer, the lender, and the contractor doing the actual work.


The potential buyer s must make this dwelling their primary residence. They are not necessary to complete the loan as they do not have any bearing on the safety of the home, but they could make the home worth more or make 2203k more convenient to live in everyday. This program has been in existence for a number of years. Condos and townhouses qualify only for a k loan if the repair and renovation work is required inside. It is important to remember that most repairs need to specjfication done within 60 days of the start of the project, which means that you need a reputable contractor.

The repairs that are to be completed are split into 3 categories: A few examples of mandatory repairs include roof repair or replacement, electrical work or HVAC repairs. There is an extensive list of items that can be financed with a K loan. Good Neighbor Next Door. The maximum amount of a regular K loan is percent of the dwelling after renovation.

The repair specification is a write-up i. There is a specific list of renovations, repairs, and purchases that pertain to each type of loan. It is generally up to you to find the contractor that understands the parameters of the K loan, how to stick within the budget and how to stick to the required schedule.

HUD (k) Specification Of Repairs Example – Easy k Professional

Desired repairs — These are the list of repairs that the homeowners wish to have done in order to make the home exactly what they want. Everything from making a dwelling more energy efficient by installing new doors, windows, roof, floors, and HVAC to making repairs spceification a concrete driveway or a concrete sidewalk on the property qualifies for a K loan.

The streamline is for less extensive renovations and does not require the expertise of an architect or engineer. The consultant works on behalf of HUD, ensuring that the home that you are purchasing meets all of their requirements.