Why Do You Need JAK BUILDERS On Your 203k Team?
Remodeling experience and a contractor’s license alone do not make a contractor qualified to do 203k loan renovations. Many licensed contractors do not have liability insurance because it is not required by the Contractor’s State License Board. Many licensed remodeling contractors are also not EPA lead safe certified. With a 203k loan the lender requires and verifies that the contractor you use is both insured and EPA lead safe certified. JAK Builders is licensed, fully insured and EPA lead safe certified.
It is also critical to use a contractor who is experienced in 203k loan renovations. It is a very document specific and time specific program from the contractor’s end.
JAK Builders is a qualified and experienced 203k loan contractor. Our knowledge and experience can save you from unnecessary, frustrating and even disastrous delays or outcomes. We know and adhere to the time requirements. We know and fulfill the paperwork requirements. We know how to accurately estimate the work so you get the proper funding for your project. We know and follow the necessary procedures to help make your project successful.
Best of all – we are proud to say that our experience has helped many of our 203k customers establish instant equity in their homes!
What Is A 203k Loan?
A 203k loan is a home loan and a construction loan all wrapped up into one single loan. 203k loans are not limited to homebuyers; they are also available to current homeowners looking to make improvements to their existing home. This can be done by refinancing an existing mortgage into a 203k loan. The result is one loan which covers both your mortgage and the cost of improvements. 203k loans are insured by the FHA and funded by private lenders who are FHA-approved.
Unlike conventional loans, the amount of a 203k loan is based on the projected value of the home (or what the home is projected to be worth after improvements are made). The lender also takes into account the cost of the work to be done.
Benefits Of A 203K Loan:
• A single loan – A 203k loan provides financing for both the purchase (or refinancing) of a home and the remodeling of that home in a single loan.• Projected Value - The loan amount can be based on the projected value of your home which is the value of your home after renovations are done.
• Tax deductible - Because the remodeling costs are included in a 203k loan the interest you pay to remodel is also tax deductible.
• Your money is protected – The money for remodeling or repairs is automatically held in a rehabilitation escrow account until the work is completed. Also, 10 percent of each payment released to the contractor is held in the escrow account until a final inspection has been made and a final lien release notice has been provided. This ensures that no liens are placed on your property.
• Finance up to 6 months of mortgage payments – If you cannot live in your home during remodeling you can finance up to 6 months of your mortgage payments. You do not have to worry about making payments on two homes while one is being remodeled.
• Most closing costs are included in the loan.
• Not limited to first time homebuyers - You do not have to be a first time homebuyer to use a 203k loan.
• Contingency Reserve – Some construction items are simply unforeseeable such as some electrical or plumbing work. With a 203k loan you are allowed a contingency reserve of between 10%-20% of the construction estimate to cover any unforeseeable items that are not included in the estimate. If you are interested in using a 203k loan for your home renovation JAK Builders is qualified and experienced so contact us today.
