FHA 203(k) loans are an excellent choice for purchasing a fixer-upper or updating your new home with small renovations or major repairs. This government-backed mortgage allows homebuyers to combine their mortgage with the cost of approved renovations into a single loan, saving buyers time and money.
A great option for homebuyers looking to personalize or upgrade their home through renovations and repairs, and seeking lower down payment requirements.
Primary residence, single family and 2-4 unit properties, condos and townhomes, Planned Unit Developments (PUDs), and manufactured double-wide homes; must finance a minimum of $5,000 for repairs/renovations and maximum loan amounts vary by county (FHA Mortgage Limits by County).
If you’re looking to remodel a kitchen or add on a new room, fix items identified in a home inspection or replace the windows, the FHA 203(k) can give you the capital you need without the burden of an excessive down payment or an unreasonable interest rate.
There are two versions of the FHA 203(k) loan that are generally determined by the size or type of renovations financed: the Standard 203(k) is for repairs that exceed $35,000 and the Limited 203(k) works great for repairs below $35,000. Be sure to check out the What Loan is Right for Me page as it highlights the FHA 203(k) along with other construction and renovation loan solutions.
Ready to get expert advice and determine what works best for your personal situation? Contact one of our local, caring mortgage professionals at a Mortgage Center Near You.