How Do I Replace a Sill Plate? The 203k Loan!
Replacing the sill plate on a house can sound like an impossible job. The sill plate is basically the buffer between the bottom of your walls and the top of your basement or foundation. It’s treated wood, and it’s anchored to the cement below. Sometimes these need to be replaced. (read about termite damage and sill plates here) But do you want to put jacks under your home and lift it up all on your own? It can be done.
I found an article on ehow.com that explains how to replace a sill plate.
It sounds like a big job to me. Or you can hire a professional to take care of it for you. But how do you pay for it? The Full 203k is used for anything structural. The sill plate falls under that category. Of course, the house must be an owner-occupied home, or fall under the multi-unit qualifications.
Some of the nuances of the FHA 203k loan
We know the sill plate is covered by the 203k renovation loan. Several items are NOT covered.
We also know that borrowers must be owner-occupied home buyers. FHA says investors and nonprofit organizations need not apply.
Ineligible properties include manufactured homes, log homes, homes that have never been completed and any home completely demolished INCLUDING the foundation. So as long as the foundation is there, the 203k is an option.
FHA has a few other requirements like minimum cash investment and mortgage insurance. A licensed/approved contractor must also do the work. Some of these requirements have led people to ask, "Why are 203k loans so terrible and difficult to get?" As that article points out, they shouldn't be so bad. Having a 203k specialist on your team will help answer any of these questions before they’re asked. If you've had a bad experience with the 203k, let us know. Leave a comment below.
UPDATE:
Like this information? Find out 4 more repairs covered with the 203k. Or download our free eBook, a 203k Survival Guide. And check the FHA 203k section on our website.
(sill plate photo: Conversations With Friends)