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. But do you want to put jacks under your home and lift it up all on your own? It can be done.
Here's an article on ehow.com that explains how to replace a sill plate.
Whether you have the skills do replace the sill plate yourself or you hire a professional to get the job done, you also need to pay for it. Many people turn to the Standard 203(k) Renovation Loan to finance this type of project. Of course, the house must be an owner-occupied home, or fall under the multi-unit qualifications.
More about the FHA 203(k) loan
Since replacing the sill plate falls under structural work, we know that it's covered by the FHA 203(k) renovation loan. It's also good to know what changes are NOT covered. These include:
Recreational or luxury improvements like swimming pools and exterior hot tubs
We also know that you need to plan to live in the property you are buying, otherwise referred to as owner-occupied. The Federal Housing Administration (FHA) - the agency that guarantees the loan - says investors and nonprofit organizations need not apply.
Types of properties you can buy with an FHA 203(k) include:
- A one-to-four-unit family home
- An individual condominium unit, meeting all FHA condo requirements
- A site condominium unit
- Mobile homes/manufactured housing (not single-wide)
Ineligible properties include 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 203(k) 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 203(k) loans so terrible and difficult to get?" Read the article and you'll see the 203(k) is not really that complicated. The key is to work with a lender who is experienced in providing renovation loans.* Having a 203(k) specialist on your team will help answer any of these questions before they’re asked.
*Amerifirst is ranked as one of the top twenty FHA 203(k) lenders in the nation for 2020 by the Department of Housing & Urban Development.