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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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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 results of this write-up determines not only if the dwelling qualifies for a K loan but also whether it qualifies for a regular K loan or a streamline K loan. If changes are required, simply generate a new SOR. The repairs that are to be completed are split into 3 categories: The consultant works on behalf of HUD, ensuring that the home that you are purchasing meets all of their requirements. If you find a contractor who has prices that seem too good to be true — they probably are and you should steer clear of him.

Those individuals looking to purchase an existing dwelling but do not want to take on the responsibility of purchasing a dwelling that is need of renovation and repair because they would need to apply, be approved, and make payments for both a home loan and a home improvement loan really benefit from a FHA K loan. A few examples of mandatory repairs include roof repair or replacement, electrical work or HVAC repairs.

The repair specification is a write-up i. 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.

When you are trying to secure a k loanyou will need to work with a k consultant. Of the 2 types of loans, the streamline K is the most commonly requested and approved.


In general, the Specification of Repairs is completed in its standard format and does not create any problems for potential homeowners. Everything from making a dwelling more energy efficient by installing new doors, windows, roof, floors, and HVAC to making repairs to a concrete driveway or a concrete sidewalk rspairs the property qualifies for a K loan.

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. When the work is being reairs from the proceeds of the K loan, however, you should be more careful.

203k Loan | 203k | FHA 203k

The FHA K is a loan program that bundles the home loan along with a home improvement loan which makes it ideal for individuals looking to purchasing an existing dwelling for their primary residence that is need of renovation or repair.

This part of the process can be tricky because every contractor works differently. See if you qualify for your new fixer upper with a free quote! It is important to remember that most repairs need to be done within 60 days of the start of the project, which means that you need a reputable contractor.

203K Loan and the Specification of Repairs

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. 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.

Mandatory repairs — These are the repairs that need to be done in order to make the home safe to live in on a daily basis. If your current contractor bid rather low costs for your project and you agreed, you are stuck with those prices.

Use our FHA k loan calculator to determine: 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 maximum amount of a regular K loan is percent of the dwelling after renovation. Other Renovation Loan Options.

Understanding the Specification of Repairs (SOR)

Streamline or Full k. Good Neighbor Next Door. Only 1 to 4 unit buildings qualify for this type of loan.

Get a free quote and get started today. There is no such certification. 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. Another important role of the Specification of Repairs is helping you to find the right contractor.

This could make it difficult to find another contractor that will work within the same budget doing the same work that you need done.

As we all know, contract work can fall through, which would leave you if the lurches to find another contractor. In the case of a Standard k project, sepcification FHA qualified k Consultant will be required to manage the collection and submission of documents to the lender as well as dispersing of funds. The repairs that are to be completed are split into 3 speciifcation. HUD k Specification of Repairs — Easy k Professional When applying for a HUD k loan, a k Consultant or Homebuyer will need to submit a work write-up which lists in detail all of the labor and materials for completing the rehabilitation project.

Not only rpeairs it help the underwriter determine if your loan should be approved, erpairs it also helps the appraiser come up with the estimated value of the home once the repairs are complete, as there needs to be a current value and future value tied to the loan in underwriting.

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.