FHA 203k Loan

Nothing is more discouraging than finding the perfect home, only to learn that it needs thousands of dollars in renovations before it can be approved for a mortgage. This is true whether you are a buyer looking for the house of your dreams or a real estate agent helping a family locate an affordable place to live. SteveKnowsLoan’s FHA 203k Loan Program makes it easy to secure funding for a home purchase and renovations.

Concurrent purchase and improvement financing

Most standard mortgage programs have strict guidelines that require financed properties to be in habitable condition. If a buyer is able and willing to do the work necessary to get a home in need of renovations or repairs up to livable condition, they can save a lot of money. The difficulty is resolved by the FHA 203k Loan Program, which allows borrowers to get the funds necessary to purchase a home and make any necessary repairs.

SteveKnowsLoan offers FHA 203(k) loans, which are backed by the Federal Housing Administration. Only properties that are at least a year old are eligible for these loans, and once the work is done, the borrowers must live there permanently.

Features of the 203(k) Plan

Up to 50% of structural repairs can be funded, and minor repairs can be funded through a streamlined method. Other highlights of the program include:

  • Minimum qualifying credit score is 550.
  • Minimum repair cost of $5,000
  • Required Minimum Deposit of 3.5%
  • Considers the value that could be achieved after investments are made
  • The most money that can be spent on repairs is fifty percent of the “subject to” valuation.
  • Purchase must be finalized before construction is finished.
  • 45 percent maximum debt-to-income ratio for rehabilitated funds
  • Ineligible for refinancing with a cash-out option
  • Borrowers must be primary residence owners.
  • Not compatible with most programs that help with the initial investment.
  • The ability to consolidate the costs of a home’s purchase and necessary renovations into a single, manageable loan allows purchasers and their agents to look at more properties.
  • Renovations that qualify for a 203(k) loan
  • Loans to pay the expense of rehabilitation are made available under the program.
  • Fixing the structure
  • Elimination of dangers to health and safety
  • Maintenance and upgrades to water and waste disposal systems
  • Installation or repair of new or existing rainwater drainage systems
  • Facilitating access for people with disabilities
  • Enhancements to energy efficiency are added.

Contact us and talk to one of SteveKnowsLoan’s mortgage specialists about getting more information on an FHA 203(k) loan.

Call Steven Jackson at 813-616-9411 now!

Have questions or need help?

Request a call back or email us your questions!

Facebook
Twitter
LinkedIn

Fast Quote

Get started with your free, no obligation fast rate quote now!

Open chat
Hello 👋
Can we help you?