Home Rehab Loans (Section 203k)
Required Home Improvements
For home rehab activities that do not also require buying or refinancing
the property, borrowers may also consider a Title
I Home Improvement Loan.
All rehab construction and/or additions financed with
a Section 203(k) home rehab loan must ensure that (1) each sleeping
area is provided with a minimum of one approved, listed and labeled
smoke detector installed adjacent to the sleeping area, and that
(2) the property complies with the following cost effective energy
conservation standards:
Addition to Existing Structure
New construction
must conform with local codes and HUD Minimum Property Standards
Rehab of Existing Structure
To improve
the thermal efficiency of the dwelling, the following are required:
- Weatherstrip all doors and windows to reduce infiltration of
air when existing weatherstripping is inadequate or nonexistent
- Caulk or seal all openings, cracks or joints in the building
envelope to reduce air infiltration
- Insulate all openings in exterior walls where
the cavity has been exposed as a result of the rehab;
insulate ceiling areas where necessary
- Adequately ventilate attic and crawl space areas
Replacement Systems
- Heating, ventilating, and air-conditioning system supply and
return pipes and ducts must be insulated whenever they run through
unconditioned spaces
- Heating systems, burners, and air conditioning systems must
be carefully sized to be no greater than 15 percent oversized
for the critical design, heating or cooling, except to satisfy
the manufacturer's next closest nominal size
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