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Financing Options
FHA 203(k) Program
Have you found the home that's just right for you but it needs costly repairs?  Or is your current home in need of repairs or upgrades?  The FHA 203(k) Streamline Mortgage program provides exciting options for buyers and homeowners to purchase or refinance homes in need of repairs or upgrades.  Most repairs and upgrades can be rolled into an FHA 203(k) Streamline Mortgage. 

Raindance Builders can assist you through the entire process, from finding a home, finding and working with your lender on the 203k loan, assisting with design, and completing the repairs and upgrades on a timely schedule.   Contact us today for more information or for a free estimate. 

All of the following repairs and upgrades can be rolled into an FHA 203(k) Streamline Mortgage:

  • Repair/Replacement of roofs, gutters and downspouts

  • Repair/Replacement/upgrade of existing HVAC systems

  • Repair/Replacement/upgrade of plumbing and electrical systems

  • Repair/Replacement of flooring

  • Minor remodeling, such as kitchens, which does not involve structural repairs

  • Painting, both exterior and interior

  • Weatherization, including storm windows and doors, insulation, weather stripping, etc.

  • Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens

  • Accessibility improvements for persons with disabilities

  • Lead-based paint stabilization or abatement of lead-based paint hazards

  • Repair/replace/add exterior decks, patios, porches

  • Basement finishing and remodeling, which does not involve structural repairs

  • Basement waterproofing

  • Window and door replacements and exterior wall re-siding

  • Septic system and/or well repair or replacement


Energy Efficient Improvements
Financing is available for energy efficient improvement projects and renovations as well as tax credit incentives.

The FHA EEM Program is for existing properties.  An EEM recognizes the energy savings of a home that has "cost effective" energy saving improvements, which increase the energy efficiency of a home.  Because the home is energy efficient, the occupant(s) will save on utility costs and, thus, be able to devote more income to the monthly mortgage payment.  Energy efficiency improvements can include energy saving equipment and active and passive solar technologies.

Under the FHA EEM Program, a borrower can finance into the mortgage 100 percent of the cost of eligible energy efficient improvements, subject to certain dollar limitations, without an appraisal of the energy efficient improvements.  To be eligible for inclusion into the mortgage, the energy efficient improvements must be "cost effective" (i.e., the total cost of the improvements, including maintenance costs, must be less than the total present value of the energy saved over the useful life of the improvements).  The mortgage includes the cost of the energy efficient improvements, in addition to the usual mortgage amount normally permitted. 

Energy Efficient Mortgage guidelines:

• Allowable for purchase or refinance of a principal residence to incorporate the cost of energy efficient improvements into the mortgage.

• Existing 1-4 unit properties including condos are permitted. New construction is not permitted.

• Borrower may finance 100% of the total cost of improvements into the mortgage if the total cost of the improvements including maintenance is less than the total present value of the energy saved over their useful life. Appraisal of improvements is not required.

• Once it is determined that the borrower and the property qualify for an FHA loan, the maximum dollar amount of the cost-effective energy package that can be added to the loan amount will be determined using the energy rating report (HERS) and EEM worksheet.

o The maximum amount for the portion of the EEM for energy improvements is the lesser of:

o The actual cost of the improvements OR 5% of:

The value of the property (FHA appraised value of the property as indicated on the DE statement of appraised value), OR:

115% of the median area price of a single family dwelling, OR

150% of the conforming Freddie Mac limit

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