FHA 203(k) Limited: Perfect for smaller projects and a total cost under $35,000 without structural renovations. Standard: Ideal if the total project cost is over $35,000 or structural repairs are in your renovation plans. Low down payment of 3.5% of the total...
Required Documents
Contractors will play a vital role in the renovation process and believe it or not, they are a part of the financing process too. Since you’re borrowing funds to buy and renovate a property, we’ll work with the contractor too on the process. We disburse funds directly...
Options and FAQs
Up to this point, we talked about buying a property with the FHA 203K loan program, but you can also use it to refinance your home. If you already own a home and want to fix it up, but don’t want to take out a personal loan or home equity loan, you can use the FHA...
Pros and Cons of the FHA 203K Loan
Like any loan, there are advantages and disadvantages of the FHA 203K loan. Understanding both sides can help you determine if it’s a good investment for you. Pros: • You can buy a rundown house without having to pay cash for the entire purchase. The home’s current...
Step-by-Step Instructions to get an FHA 203K Loan
So how do you get an FHA 203K loan? It’s not as complicated as it might seem so far. Here the steps are broken down. 1. Find a local lender that understands the complexities of renovation financing It’s always a good idea to get quotes for your financing before you...
FHA 203K Loans
There are two types of FHA 203K loans. The type you need depends on the type and cost of the renovations. The two loans are the Limited 203K loan and the Standard FHA 203K loan. Both loans provide funds to buy and renovate the property, the difference is in the type...
FHA 203K Loan Requirements
If you’re familiar with FHA loans, you already understand how to qualify for them since FHA 203K loans are a subsidiary of FHA loans. But since the loan program is slightly different, we’ll cover the full aspect of how to qualify for the FHA 203K loan. FHA 203K Loan...
FHA 203K Loan Steps
The FHA 203K loan can feel a little mysterious since it has so many parts. Not only do you buy a home, but you fix it up using the loan’s funds too. Here are the steps most borrowers go through to get the FHA 203K loan for their home purchase and renovations. Get...
The FHA 203K Loan – How it Works
Buying a fixer-upper home can be financially smart and fun. You get to fix the home up how you want and increase its value all at the same time. Most fixer-uppers won’t pass an appraisal though, so unless you have the cash to buy the property outright, finding...