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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The specification of repairs SOR is the first step in the process of determining if the existing dwelling you want to purchase actually qualifies sppecification a FHA K loan.

K Loan and the Specification of Repairs

This program has been in existence for a number of years. It lost popularity in the mids but started gaining in popularity again in the mids. 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.

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.

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Understanding the Specification of Repairs

There is a specific list of renovations, repairs, and purchases that pertain to each type of loan. The streamline is for less extensive renovations and does not require the expertise of an architect or engineer.

The maximum amount of a regular K loan is percent of the dwelling after renovation. Of the 2 types of loans, the streamline K is the most commonly requested and approved.

With a K loan specfication the individual s looking to make the purchase of an existing dwelling and the existing dwelling itself must meet specific qualifications.

The potential buyer s must make this dwelling their primary residence. Only 1 to 4 unit buildings qualify for this type of loan. Condos and townhouses qualify only for a k loan if the repairrs and renovation work is required inside.

HUD 203(k) Specification Of Repairs Example

In order for an existing dwelling to qualify for either a regular or a streamline loan, it requires a contractor or independent consultant to look over the property and complete a specification of repairs. The repair specification is a write-up i.

The results of this write-up determines not only if the specificatino qualifies for a K loan but also whether it qualifies for a regular K loan or a streamline K loan. 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. Though the potential home buyer does not have to use a consultant or contractor in order to apply for a K loan; however, it does expedite the process.


There is an extensive list of items that can be financed with a K loan. Neither the regular or streamline K loan permits the financing of luxury items such the installation of a swimming pool, tennis court, etc.

Everything from making a dwelling more energy efficient by repajrs new doors, windows, roof, floors, and HVAC to making repairs to a concrete driveway or a concrete sidewalk on the property qualifies for a K loan.

If there is masonry work that needs repair then a concrete repair specification should be submitted listing specifjcation needs to be done in order and submitted along with the appraiser report. We are not the government. This site is built specifically to only provide information on K Loans. Understanding the Specification of Repairs.