Philadelphia rowhomes with fire damage, burst pipes from a vacant winter, or years of roof leaks often sell well below value. A renovation loan is based on the as-completed value, so the damage becomes the scope.
- Standard 203k: structural repairs, remediation, framing, and full systems, with a HUD consultant managing draws.
- HomeStyle: the same projects with conventional credit, including rentals.
What to check
- L&I records for unsafe or imminently dangerous notices
- Shared party walls, since fire and water damage can affect the neighbors' walls too
- Mold remediation needs
- A 15–20% contingency
- Utilities and access for the appraiser and consultant