If you are going to finance a home with a FHA 203k loan, there are some repairs that are mandatory if they are needed in order to secure the loan. All rehabilitation construction and/or additions financed with 203K mortgage proceeds must comply with the following:
Cost Effective Energy Conservation Standards
Addition to Existing Structure-New construction ,must conform with local codes and HUD Minimum Property Standards in 24 CFR Section 200.926d (HUD Handbook 4910.1, Appendix K) is required.
Rehabilitation of Existing Structure
To improve the thermal efficiency of the dwelling, the following are required:
- Weather-strip all doors and windows to reduce infiltration of air when existing weather-stripping is inadequate or nonexistent.
- Caulk or seal all openings, cracks or joints in the building envelope to reduce air infiltration
- Insulate all openings in exterior walls where the cavity has been exposed as a result of the rehabilitation.
- Insulate ceiling areas where necessary
- Adequately ventilate attic and crawl space areas
Heating, ventilating, and air conditioning system supply and return pipes and ducts must be insulated whenever they run through unconditioned spaces.
Heating systems, burners, and air conditioning systems must be carefully sized to be no greater than 15%
oversized, except to satisfy the manufactures” next closest nominal size.
If new heating/cooling system is proposed, provide heat loss/heat gain calculations for the entire house to ensure proper sizing of heating system. Use the design criteria developed by the American Society of Heating, refrigerating and Air Conditioning Engineers (ASHRAE) or Manual J developed by the National Environmental Systems Contractors Association.
Each sleeping area must be provided with a minimum of 1 approved, listed and labeled smoke detector installed adjacent to the sleeping area. The detector must sense visible or invisible particles of combustion. When activated, the detector must provide an alarm suitable to warn occupants within the sleeping area. Smoke detectors may be battery powered when installed in existing or rehabilitated dwellings. However, where new construction is being added to an existing building, the smoke detector must receive its primary power from building wiring, in conformance to local codes and ordinances.
Have more questions about the FHA 203k loan and what the required repairs are in your situation? Be sure to contact one of our FHA 203k loan experts today.