FHA 203(k) Loans

FHA 203(k): The Perfect Loan for Buying and Renovating Your Dream Home

Do you have your eye on a fixer-upper but need financing for both the purchase and repairs? An FHA 203(k) loan can help you buy and renovate a home with one convenient loan. It’s a smart solution for making your dream home a reality.

What is an FHA 203(k) Loan?

The FHA 203(k) loan is a government-backed mortgage that allows you to finance the purchase or refinance of a home and include the cost of repairs or renovations. It’s designed to help buyers and homeowners improve their properties without needing separate loans.

Why Choose an FHA 203(k) Loan?

One Loan for Purchase and Renovation: Combine the costs of buying a home and fixing it up into one mortgage.

Low Down Payment: Only 3.5% down is required, making it an affordable option for homebuyers.

Flexible Credit Requirements: FHA loans are accessible even if your credit score isn’t perfect.

Higher Loan Limits: Borrow more than the home’s current value by including the cost of renovations.

Transform Any Home: Make improvements that turn a fixer-upper into your dream home.

Types of FHA 203(k) Loans

Standard 203(k):

Ideal for major renovations, such as structural changes, room additions, or extensive repairs.Requires a minimum of $5,000 in repair costs.Involves a HUD-approved consultant to oversee the process.

Limited 203(k):

Best for minor renovations and non-structural repairs like painting, flooring, or replacing appliances.Maximum repair costs of $35,000.Streamlined process without the need for a HUD consultant.

Who Qualifies for an FHA 203(k) Loan?

To qualify, you’ll need to meet these basic requirements:

Credit Score: Generally 580 or higher for a 3.5% down payment.

Primary Residence: The home must be your primary residence (not an investment property).

Property Type: Eligible properties include single-family homes, certain condos, and multi-unit properties (up to 4 units).

FHA Loan Limits: Borrowing must fall within local FHA loan limits.

The Application Process

We make getting an FHA 203(k) loan simple and stress-free:

Determine Your Needs: Decide whether you need a Standard or Limited 203(k) loan based on your renovation plans.

Pre-qualify: Find out how much you can borrow for the home and repairs.

Submit Your Application: Provide income, credit, and property details, along with a list of planned renovations.

Close and Renovate: Finalize your loan, purchase the home, and begin your renovation project!

Is an FHA 203(k) Loan Right for You?

If you’re looking to buy a home that needs some TLC or want to refinance and renovate your current property, an FHA 203(k) loan is the perfect option. It offers the flexibility to finance both the home and improvements, all in one loan.

Get Started Today!

Ready to turn a house into your dream home?

Contact us now to learn more about FHA 203(k) loans, speak with a mortgage expert, and start your application. With our expert guidance, you’ll be on your way to owning and transforming the perfect home.

Don’t wait—apply today and make your renovation dreams come true!