How are overages handled? Say a rehab item was expected to cost 16k but it ended up costing 18k. Would I put in for a draw of 18k or am I responsible to make up the difference?

Home / FAQ / How are overages handled? Say a rehab item was expected to cost 16k but it ended up costing 18k. Would I put in for a draw of 18k or am I responsible to make up the difference?

How are overages handled? Say a rehab item was expected to cost 16k but it ended up costing 18k. Would I put in for a draw of 18k or am I responsible to make up the difference?

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Any overages on your budget outside of your total rehab budget, will be your responsibility. We always suggest to borrowers to add in a Misc/Overage line item on both their labor side and materials side for those unexpected things that you may find along the way. Once you submit your repair budget and it’s included in your appraisal value, it can’t be modified and any overages will be your responsibility. It’s very important that you submit as detailed a rehab budget with pricing that is as accurate as possible from the start.

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