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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I have read and agreed to the Privacy Statement and Terms and Use policy. The consultant works on behalf of HUD, ensuring that the home that you are purchasing meets all of their requirements. 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. 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.

The repairs that are to be completed are split into 3 categories:. We are not the government. If there is masonry work that needs repair then a concrete repair specification should be submitted listing what needs to be done in order and submitted along with the appraiser report.

203k Loan | 203k | FHA 203k

This program has been in existence for a number of years. Streamline or Full k. Another important role of specificatin Specification of Repairs is helping you to find the right contractor.

These repairs are typically cosmetic in nature and have no bearing on the livability of the home. Use our FHA speclfication loan calculator to determine: Good Neighbor Next Door. The repair specification is a write-up i. When the work is being paid from the proceeds of the K loan, however, you should be more careful.


One problem that many people run into with the K loan is finding a contractor that charges the market value of any repairs that are being included in the K loan.

Only 1 to 4 unit buildings qualify for this type of loan. Get a free quote and get started today.

203K Loan and the Specification of Repairs

When you are paying the costs of the contractor out of pocket, on your own, you can choose him based on price all that you want. There is no such certification. 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.

Condos and townhouses qualify only for a k loan if the repair and renovation work is required inside. This site is built specifically to only provide information on K Loans. Everything from making a dwelling more energy efficient by installing new doors, windows, roof, floors, and HVAC to making repairs to a concrete driveway or a concrete sidewalk on the property qualifies for a K loan.

See if you qualify for your new fixer upper with a free quote!

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

The repairs that are to be completed are split into 3 categories: Neither the regular or streamline K loan permits the financing of luxury items such the installation of a swimming pool, tennis court, etc. 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.


The maximum amount of a regular K loan is percent of the dwelling after renovation. Here is a link to an example of a Specification of Repairs as generated by Easy k Professional: There is an extensive list of items that can be financed with a K loan. If changes are required, simply generate a new SOR. 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.

If your current contractor bid rather low costs for your project and you agreed, you are stuck with those prices. With a K loan both the individual s looking to make the purchase of an existing dwelling and the existing dwelling itself must meet specific qualifications. Not only does it help the underwriter determine if your loan should be approved, but it also helps the appraiser come up with the estimated value of the home once the repairs are complete, as there needs to be a current value speciication future value tied to the loan in underwriting.

There is a specific list of renovations, repairs, and purchases that pertain to each type of loan.