FHA 203K Home Loans

An FHA 203K loan is a loan backed by the federal government and given to buyers who want to renovate a home. An FHA 203K loan allows the borrower to finance the home, plus provides financing to do the necessary renovations to the home.

We’re here to make the 203K home loan process easier, with tools and knowledge that will help guide you along the way, starting with our 203K Loan Qualifier.

We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you whether you’re a first-time home buyer or a repeat buyer.

The 203K Loan Process

Here’s how our home loan process works:

  • Complete our simple 203K Loan Qualifier
  • Receive options based on your unique criteria and scenario
  • Compare mortgage interest rates and terms
  • Choose the offer that best fits your needs
What types of properties are eligible for FHA 203(k) Loans?

FHA 203(k) loans can be used for one-to-four-unit residential properties, including single-family homes, condominiums, and townhomes. However, the property must be a primary residence, and certain limitations apply to the extent of renovations.

FHA 203(k) loans can cover a wide range of expenses related to home improvement, remodeling, or repairs. This includes structural alterations, room additions, kitchen and bathroom remodels, flooring, roofing, and even energy efficiency upgrades.

The FHA 203(k) loan provides funds in two stages. The first portion is for the purchase of the home, and the remaining funds are placed in an escrow account to cover the planned renovations. Contractors are usually paid directly from this escrow account as the work progresses.

Borrowers need to meet standard FHA loan requirements, including a minimum credit score. Additionally, a 203(k) consultant is typically required to assess the planned renovations, and the borrower must work with an FHA-approved lender. The property also needs to meet certain standards for health and safety.

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