We help loan-ready homeowners complete renovations as planned, facilitating smooth loan approvals and closing processes.
A cost effective and professional solution for conceptual design & cost estimates
From initial kick-off call to contractor bids in weeks rather than moths when comported with traditional methods
A cost effective and professional solution for conceptual design & cost estimates
Frequently Asked Questions
JC General Construction accepts various types of renovation loans to accommodate our clients’ needs, including:
Yes, lenders typically approve contractors participating in their construction loan programs. In a FHA 203K/HomeStyle renovation loan, Contractors must submit essential documentation, including licenses, insurance, and a detailed bid outlining the scope of work, to the lender or HUD consultant. The lender assesses qualifications and experience to ensure compliance with FHA standards and guidelines, enabling effective participation in renovation projects funded by these loans.
The construction timeline, including expected completion date, is generally agreed upon between you and your builder. For renovation projects typically supported by a construction loan, such as FHA 203K or Fannie Mae HomeStyle loans, a standard period of 12 months is often allocated.Â
Inspections for renovation loans like FHA 203K and Fannie Mae HomeStyle are typically conducted by an independent inspector appointed by the lender.This inspector verifies that repairs and improvements are completed according to the agreed-upon specifications and meet required standards. The lender relies on these inspections to ensure that funds are disbursed appropriately based on the progress of the renovation work.
FHA 203K Limited: Upon closing, the contractor receives an initial disbursement of 50% of their bid. The remaining 50% is disbursed once the job is completed, ensuring progress and quality before final payment.
HomeStyle: Following closing, contractors can access 50% of the material draw when labor and materials are specified in the bid or repair plan. Additional disbursements occur only after completed and inspected work, ensuring funds align with project milestones.
FHA 203K Standard: Within 5-7 business days post-closing, an initial material draw is available for specified items like roofing or flooring. Subsequent disbursements follow completion and inspection of installed work, ensuring funds match completed stages of the renovation.
No, advances for subcontractor payments are not authorized. Work must be completed before subcontractors can be paid.
There isn’t a set limit on draws; contractors’ needs vary. Discuss draw frequency expectations with your contractor before closing to avoid unexpected costs.
Yes, draws should align with the home’s level of completion to support additional funds. Lien waivers for the previous draw are required before requesting additional funds.
If unforeseen repairs increase costs beyond the contractor’s bid, funds may come from the contingency reserve (typically 10-15% of the bid). A signed change order and separate invoice must be submitted for approval by the HUD consultant and draw administration before proceeding with added repairs.
Submit a written request to extend the Renovation escrow period, detailing the current stage of completion, reasons for delay, and length of extension needed, along with current property photos. Additional fees apply for extensions.
FHA 203K Loans:
Fannie Mae HomeStyle Loans:
Both loan types support a wide range of property types, allowing for flexibility in choosing the right property for your renovation project.
Covered Renovations: Fannie Mae HomeStyle loans offer flexibility for a wide range of renovations, provided the changes are permanent and add value to the home. All renovations must be completed within 12 months of loan origination. Eligible projects include:
Not Covered: Despite their versatility, HomeStyle loans have some limitations. Projects not covered include:
Covered Renovations:
FHA 203K Standard: The Standard loan is ideal for more extensive renovation projects, including structural changes and repairs. Eligible projects include:
FHA 203K Limited: The Limited loan is suitable for minor, non-structural repairs and improvements. Eligible projects include:
Not Covered: While FHA 203K loans cover a wide range of renovations, there are certain limitations. Projects not covered include:
JC General Construction Inc holds the capacity to undertake construction and remodeling projects with a value of up to Two Million Dollar. The License was granted to our company by the City of Chicago’s Building Department and allows us to function as a full-service construction and renovation company in Chicago.
