FHA 203K Loans
Are you in the market to buy a fixer-upper or renovate your existing home? The 203K loan, insured by the Federal Housing Administration (FHA), is an excellent option.
What Is an FHA 203K Loan?
FHA 203K loans allow borrowers to purchase a home or refinance their existing home and take it from outdated to upgraded – all under a single loan! The amount you borrow is a combination of the price of your home and the estimated cost of the upgrades/repairs, including labor and materials.
FHA 203K Loans Are Great for Homebuyers Who:
- Want to purchase a fixer-upper or make updates to their existing home
- Need funds for home improvements included in the mortgage loan
- Have good credit scores
- Have money to put towards a down payment
- Plan to live in the property they are purchasing (must be an FHA qualified property)
FHA 203K Options:
FHA Limited 203K Loan
- Structural repairs not allowed
- No min repair guideline
- Max $35,000 cost of rehabilitation
- Consultant not required
- For minor remodeling and non-structural repairs
FHA Full 203K Loan
- Structural repairs allowed
- Min $5,000 in repairs required
- No max repair limit
- 203K consultant required
- Standard eligible improvements
FHA 203B Loan
- Non-structural repairs under $5,000 can be included in a traditional FHA loan
As with any FHA loan, you will be required to provide documentation of your income, assets, and your credit profile. You will also need to gather and provide a detailed proposal for your home, including a cost estimate to prove you are eligible for a 203K loan. FHA has specific guidelines about the types of projects you are able to finance with a 203K loan.
Fulfill your homeownership goals and create the home of your dreams!
If you would like to learn more or find out if you are eligible for an FHA 203K loan, reach out to HOMESTAR’s team of trusted mortgage advisors today.