FHA Loans - 203K Renovation and Home Improvement Loan Program
203K FHA Loans can provide mortgages for remodeling owner occupant real estate in the following situations:
- Financing just remodeling of a current owner occupied real estate
- Refinancing current mortgage and getting a cash payout to rehab your property
- Financing the purchase of your property as well as the rehabilitation of that property
Just as with all FHA Home Loans, the 203K FHA Loan encompasses all single family (1-4units) homes, HUD homes, and FHA approved condos. You must have a minimum of $5000 in renovation costs and co-ops cannot qualify.
One of the advantages of using the 203K FHA Loan programs is the opportunity to bring a non compliant home back to code. In some cases, properties that are used for both commercial and residential purposes can apply.
The maximum amount of money you can borrow through the 203K FHA Loans is 98.15% of the total mortgage price, as long as that amount does not exceed your local FHA Loan Limits.
