A FHA 203(k) Loan simplifies the home renovation process by allowing you to borrow money for your home purchase and home renovation costs using only one loan.
If you’ve been avoiding purchasing a home because you don’t have the cash for upgrades or renovation repairs, the Federal Housing Administration (FHA) has a renovation loan program just for you. It’s called an FHA 203(k) loan and it has two options depending on the extent of your renovations.
If you plan to purchase a fixer-upper or need to make improvements to your existing home, an FHA 203(k) loan may be the perfect rehab loan for you. Combining the renovation costs with your home mortgage with an FHA 203(k) loan gives you one loan with one payment for both your mortgage and renovation.
In addition to a low down payment of 3.5%, the eligibility terms of an FHA 203(k) loan are more flexible. Other general eligibility and loan features include:
Although some restrictions and special rules apply, 203(k) loans can be used to purchase and refurbish condos, two-to-four unit properties, and mixed-use properties, in addition to single-family residences and homes in planned unit developments.
A FHA 203(k) Rehab Loan, also referred to as a renovation loan, enables homebuyers and homeowners to finance both the purchase or refinance along with the renovation of a home through a single mortgage.
Instead of applying for multiple loans, an FHA 203(k) Rehab Loan allows homebuyers to purchase or refinance their primary home and renovate it with one convenient loan. By allowing the buyer to finance the cost of improvements into the purchase or refinance of a home, home rehab loans take the financial guesswork and frustration out of renovating a home.
An FHA 203(k) loan simplifies the home renovation process by allowing you to borrow money for your home purchase and home renovation costs using only one loan.
FHA 203(k) loans are backed by the federal government and are a great loan option for those who want to purchase a home and perform upgrades, repairs, remodel or customize to their needs and wants.
A renovation loan lets you stay in your current home and neighborhood, learn more about how you can get the home of your dreams!