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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This site is built specifically to only provide information on K Loans. There is a specific list of renovations, repairs, and purchases that pertain to each type of loan.

Recommended repairs — These repairs are typically recommended by the HUD consultant. 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, relairs there needs to be a current value and future value tied to the loan in underwriting.

There is no such certification.

203k Loan | 203k | FHA 203k

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. This is a detailed listing of the work that is to be completed on the property in order to adhere to the guidelines repakrs the loan approval. 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 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.

I have read and agreed to the Privacy Statement and Terms and Use policy. Cause the home buyer to be not be able to occupy the property for more than 30 days during the period in which the rehabilitation is occurring.

The repairs that are to be completed are split into 3 categories: This could make it difficult to find another contractor that will work within the same budget doing the same work that you need done. 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.


It is important to remember that most repairs need to be done within 60 days of the start reapirs the project, which means that you need a reputable contractor.

203K Loan and the Specification of Repairs

The Specification of Repairs plays an important role in the loan process. Once the repairs, allowable fees and consultant fees are entered into the project, the Specification Of Repairs can be easily generated. The maximum amount of a regular K loan is percent of the dwelling after renovation. 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. If changes are required, simply generate a new SOR.

Other Renovation Loan Options.

K Loan and the Specification of Repairs

The results of this write-up determines not only if the dwelling qualifies for speecification K loan but also whether it qualifies for a regular K loan or a streamline K loan. 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.

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. The potential buyer s must make this dwelling their primary residence. This program has been in existence for a number of years. As we all know, contract work can fall through, which eepairs leave you in the lurches to find another contractor. Of the 2 types of loans, the streamline K is the most commonly requested and approved.

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

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. Streamline or Full k.

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. 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. The specification of approval assists greatly in the process of coordinating what repairs and renovations need to be made to a dwelling with the potential buyer, the lender, and the contractor doing the actual work.


In order for an existing dwelling to qualify for either a regular or a streamline loan, it requires a contractor or independent consultant to look over the property and complete a specification of repairs. The streamline is for less extensive renovations and does not require the expertise of an architect or engineer. Adding a detached garage or another dwelling so long as the new addition is attached to the existing dwelling.

A few examples of mandatory repairs include roof repair or replacement, electrical work or HVAC repairs. It lost popularity in the mids but started gaining in popularity again in the mids. 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. This part of the process can be tricky because every contractor works differently.

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. Free quote to help get you started.

There is an extensive list of items that can be financed with a K loan. 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.

The repairs that are to be completed are split into 3 categories:. We are not the government. When the work is being paid from the proceeds of the K loan, however, you should be more careful.

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