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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The consultant works on behalf of HUD, ensuring that the home that you are purchasing meets all of their requirements. 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 and future value tied to the loan in underwriting. 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.

This is a detailed listing of the work that is to be completed on the property in order to adhere to the guidelines of the loan approval. 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 it more convenient to live in everyday. Good Neighbor Next Door. The specification of repairs SOR is the first step in the process of determining if the existing dwelling you want to purchase actually qualifies for a FHA K loan.

The repair specification is a write-up i. This program has been in existence for a number of years. Understanding the Specification of Repairs. 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 required to preserve the property from erosion.


Once the repairs, allowable fees and consultant fees are entered into the project, the Specification Of Repairs can be easily generated. The streamline is for less extensive renovations and does not require the expertise of an architect or engineer. If your current contractor bid rather low costs for your project and you agreed, you are stuck with those prices. Though the potential home buyer does not have to use a consultant or contractor in order to apply for a K loan; however, it does expedite the process.

Adding a detached garage or another dwelling so long as the new addition is attached to the existing dwelling. See if you qualify for your new fixer upper with a free quote! Search Search the site Here is a link to an example of a Specification of Repairs as generated by Easy k Professional: We are not the government.

When the work is being paid from the proceeds of the K loan, however, you specifkcation be more careful. Recommended repairs — These repairs are typically recommended by the HUD consultant.

Select Maryland Pennsylvania Virginia. The maximum amount of a regular K loan is percent of the dwelling after renovation.

Understanding the Specification of Repairs

The repairs that are to be completed are split into 3 categories:. This part of the process can be tricky because every contractor works differently. A few examples of mandatory repairs include roof repair or replacement, electrical work or HVAC repairs. The Specification of Repairs plays an pf role in the loan process.

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. Improved accessibility to a disabled person, such as remodeling kitchens and baths for wheelchair access, lowering kitchen cabinets, installing wider doors, and exterior ramps. If you find a contractor who has prices that seem too good to be true — they probably are and you should steer clear of him.

There is no such certification. If the project is a Streamlined kthe homebuyer can manage the od themselves; however, it is highly advised they seek the assistance of a k Specificatikn. This site is built specifically to only provide information on K Loans. 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. Streamline or Full k. Your email address will not be published. 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.


It lost popularity in the mids but started gaining in popularity again in the mids.

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.

When you are trying to secure a k loanyou will need to work with a k consultant.

Of the 2 types of loans, the streamline K is the most commonly requested and approved. These repairs are typically cosmetic in nature and have no bearing on the speecification of the home. 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. What are the Major Costs of Owning a Home?

FHA k Eligible Repairs

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.

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

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