What types of renovation-related costs can be included the total renovation costs?

Renovation-Related Costs

Renovation-related costs that may be considered as part of the total renovation costs include:

• property inspection fees;
• costs and fees for the title update;
• architectural and engineering fees;
• independent consultant fees;
• costs for required permits;
• other documented charges, such as fees for energy reports, appraisals, review of renovation plans, and fees charged for processing renovation draws; and
• up to six months payments (PITIA) if a principal residence property cannot be occupied during renovation (see B5-3.2-04, HomeStyle Renovation Mortgages: Costs and Escrow Accounts for additional information).

Note: An amount for sweat equity may not be factored into the renovation costs.

For additional information, see B5-3.2-02, HomeStyle Renovation Mortgages: Loan and Borrower Eligibility.