Finance both the purchase and renovation of your dream home.
FHA’s HUD 203K loan is an all in one loan designed to finance both the purchase and renovation of your house.
What exactly is the FHA 203k loan program?
The primary program for the rehabilitation and repair of single-family properties is the Federal Housing Authority’s 203k loan program The program offers offering funds to both purchase and rehabilitate properties. it is an important tool for expanding home-ownership opportunities and to expand community and neighbourhood revitalisation efforts.
The 203k is a Federal Housing Administration (FHA) mortgage insurance program allows for the purchase (refinance) of a house and its renovation through a single mortgage.
Responsibilities of the Consultant
The 203(k) Consultant is an FHA-approved inspector who from start to finish oversees the rehabilitation project. In this critical role it is the consultant’s responsibility to meet with the borrowers and inspect the property. The consultant will determine what repairs are required to bring the property up to FHA minimum standards. The borrower can also discuss with the consultant the optional improvements they would like to make and add into the 203(k) loan amount. The consultant prepares all applicable architectural exhibits, feasibility study and the specifications.
Who Qualifies?
- A minimum down payment of 3.5%
- A credit score of 640 or higher
- You currently have no other FHA loans
- You DO NOT have to be a
first-time buyer
Ask your loan officer about additional requirements. To check the current loan limits by county, go to entp.hud.gov or check with your loan officer for the current limits.