Through the Federal Housing Administration (FHA) 203(k) Rehabilitation program, borrowers can purchase or refinance a home and include repair costs with a single mortgage. A 203(k) loan has a lower down payment requirement compared to other rehabilitation options for financing, which puts rehab projects within reach for individuals who otherwise could not afford them. Borrower eligibility and credit qualifications for this product are the same as any other FHA loan, with the same FHA maximum mortgage limits applying. 30-year fixed rate mortgages offered!
Expand your market reach to finance homes below property standards or buy a property in need of modernization and repairs. Help low to moderate income families, first-time homebuyers, or buyers with limited cash, to purchase a home with as little as a 3.5% down payment or refinance with 3.5% equity.
With a 203(k) loan, the borrower may simply obtain one mortgage at a long-term fixed rate to finance both the acquisition and the rehabilitation of the property or to refinance current property. The 203(k) loan provides the funds for the rehabilitation of the property on both purchases or refinances of the existing properties. The 203(k) total loan amount is based on the projected value of the property with the work completed, including the cost of the rehabilitation.
203k Construction Loan has more flexibility. You can have Lower FICO Scores and Higher debt-to-income ratios. One of the most popular and diverse home improvement loans is the FHA 203k. You can make home improvements to the house you want, or the home you already own. Use the funds for simple upgrades to your home like a kitchen or bath improvement, or to completely reconstruct a home that is presently unlivable. You can even use a 203k Rehabilitation Loan to tear down most of an existing structure and build a new one using some portion of the existing foundation. You can borrow up to 100% of the appraised value – based on the value when the improvements or repairs are completed