FHA 203(k) Basics
Renovation financing to turn your house into your dream home
What Is a 203(k) Loan?
The FHA 203(k) loan lets you purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the lower of the projected market value following repairs or purchase price plus renovation costs.
Is a 203(K) Loan Right for You?
Buy a “Fixer-upper” or REO property needing renovation
Get funds to purchase
Refinance and renovate your existing home
STREAMLINE 203(k) LOAN PROGRAM
The Streamline 203(k) allows homebuyers to finance up to an additional $35,000 for repairs and improvements into their mortgage. Homebuyers can quickly and easily tap into cash to pay for the work on their property, whether an appraiser requires it or not!
The following repairs can be financed with this program:
FULL 203(k) LOAN PROGRAM
The Full 203(k) permits homebuyers to finance an unlimited amount* for repairs and improvements into their mortgage. Homebuyers can quickly and easily tap into cash to pay for the work on their property, whether an appraiser requires it or not!
The extent of the rehabilitation covered by 203(k) loan may range from relatively minor ($5,000 to $25,000) to virtual major reconstruction ($25,000+). It can also cover the conversion of a property of any size to a one- to four- unit structure.
203(k) financing allows applicants to finance:
In addition to:
*The rehabilitation cost, although unlimited, cannot exceed the