312017Mar

What is the HUD 203k Loan Program

Pine Tree Construction (PTC) is a family-owned and operated business for over 30 years in Utah and California. Our business is built upon honesty, integrity, and high-quality performance.

For more than 30 years, PTC has helped owners bring their building dreams into reality. We not only deliver superior construction quality, but we put our clients first with valued engineering ideas to save money and time. Throughout our 30 years of operation, we havealways had one goal in mind, Customer Satisfaction.

We are a member of Better Business Bureau. Additionally, we are a certified contractor for 203(K) HUD program.

PTC has taken the time to build a solid foundation of expertise and knowledge that offers our clients a systematic and ground-up approach for any type and size of projects.

We are proud to offer financing to help our customers bring their dreams into reality by choosing a program that will meet their needs. We also accept credit cards and PayPal. By using these products; we can build your commercial project, your first home, build your retirement nest, finish your basement, add a new bedroom and bathroom, or do an addition to help you with your growing family and many other renovations.

Building on a rich legacy of excellence and integrity, PTC will make your dreams and concepts a reality in a timely manner and affordably with outstanding customer satisfaction through each phase of building project.

The following is an outline of the some of the projects allowed under the 203k plans. For a complete list and detail information, please refer the handbook. It can be accessed at: Handbook 4000.1 II.A.8.a.i.(B); II.A.8.a.vi.(D); II.A.8.a.vii.(D); II.A.8.a.xi. at http://portal.hud.gov/ hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh

A 203(k) Rehabilitation Mortgage Insurance Program mortgage may be used in conjunction with
• Section 203(h) Mortgage Insurance for Disaster Victims
• Energy Efficient Mortgages (EEM)
• Solar and Wind Technologies Any costs for EEMs and Solar Energy Systems must not be included in financeable repair and improvement costs.

The mortgagee must calculate the maximum mortgage amount without factoring in the cost of EEM items, weatherization items, and solar energy systems. The mortgagee may then add the cost of these improvements to determine the base loan amount. The base loan amount may not exceed 110 percent of the after improved value of the property (100 percent for condominiums).

For Limited 203(k) transactions, the costs for energy improvements can be in addition to the $35,000 limit on total rehabilitation cost.

Mortgagee Letter (ML) 2013-36 implements changes to 203(k) rehabilitation loans for properties located in Presidentially Declared Major Disaster Area Super Storm Sandy. If a property is located in Presidentially Declared Major Disaster Area Super Storm Sandy, work on the existing foundation may be eligible provided:
• The existing foundation does not meet the Base Flood Elevation +1 foot requirement
• Additional foundation repairs/modifications are required by applicable codes, a community development plan, an insurance plan, or other local, state, or federal laws and regulations. The foundation, after elevation, must comply with local building codes, and FEMA requirements
• The lowest floor must be at or above the Base Flood Elevation + 1 foot of free board. This includes Advisory Base Flood Elevations (ABFEs) or Preliminary Flood Insurance Rate Maps (FIRMs), when available
• A report is obtained from a licensed structural engineer stating the proposed foundation is capable of supporting the proposed construction of the dwelling
• The FHA case number is assigned within 18 months (540 days) of the Mortgagee Letter (ML) 2013-36 effective date
• The loan must be processed as a Standard 203(k) and the loan amount (excluding any financed UFMIP) does not exceed 100% of the after repaired value
• The 203(k) Consultant must conduct a preliminary feasibility analysis to determine that the property is damaged but can be rebuilt to comply with building codes and FHA Minimum Property Requirements

Manufactured Housing is eligible where the rehabilitation does not affect the structural components of the structure that were designed and constructed in conformance with the Federal Manufactured Home Construction and Safety Standards and must comply with all other requirements for Manufactured Housing.