FHA 203k Rehab Loan Program

When a home buyer wants to purchase a home in need of modernization, they would normally have to take a loan to buy the home, then get a construction loan to make the repairs to the home and finally obtain a permanent mortgage once the repairs are completed. The FHA 203k rehab loan was designed to simplify the process of buying a home that needs work and save you money

FHA 203k rehabilitation loan - Quick Facts:

• Your FHA 203k lender will loan you the money to buy your home AND the additional money to complete any repairs all in one mortgage
• You still get a low fixed rate (usually slightly higher than a regular FHA loan)
• You are only required to put down 3.5% and this can be a gift
• Your FHA lender may help you determine which repairs and improvements will yield the greatest results
• FHA 203k loans require that you occupy the property as your primary residence
• The property must be 1-4 units
• Use the 203k loan to convert a single family property to a multi or vice versa
• FHA 203k maximum loan limits vary depending on geographical location (ask your loan specialist what your maximum loan limit is)
• FHA 203k rates are slightly higher than a normal FHA home loan
• You can refinance a property with 203k as well
• You can get an FHA purchase rehab loan on a mixed use property and condos

FHA 203k Home loans are a special kind of loan product and if used properly can yield great financial benefits. Click here to contact one of our 203k specialists who can help answer any questions you may have regarding the FHA 203k rehab loan.