FHA 203k Rehab Loan

Looking for a fixer-upper and a loan where you to borrow money for the purchase of the property as well as home improvements, all in one single loan? An FHA 203k loan may be perfect for you. Contact us to learn more!

Frequently Asked Questions

Are there restrictions on the repairs allowed?

Yes. The Limited 203K option allows for repairs up to $36,000. Typically cosmetic type repair are required. Standard 203K is for larger repair projects with more flexibility for repairs allowed.

Is there paperwork required?

In addition to FHA loan requirements, 203K rehab paperwork is required which may include and is not limited to contractor bids, 203 Consultant bids, permits, engineer reports, termite reports etc.

Is it important to go with an experienced lender?

As with any mortgage, you want to be sure you pick a lender who understands not only the FHA’s requirements in general, but also the 203K loan requirements in particular. We Fund LA has a dedicated experienced Renovations Team to help facilitate all rehabilitation loans.

How is the required down payment calculated?

The down payment is calculated in the cost of the total project. This includes the purchase price of the home plus the cost of the repairs that will be financed through the loan.

Is there a time limit on completing the work?

The rehab work on your home must be completed within a six-month period. Funds are set aside and disbursed with Draw Requests submitted to our renovations team. Finding a contractor you trust who will meet your needs and 203K requirements will make the rehabilitation process simpler.

What will the interest rate be?

FHA loan rates vary depending on several factors, such as your own credit history, the current state of mortgage interest rates, and whether you go with a fixed or adjustable rate option.

fixer upper transformed into modern home with fha 203k rehab loan

Acquiring an FHA 203K Rehab Loan enables you to borrow money for the purchase of a home as well as home improvements, all in one single loan. The Federal Housing Administration’s mission is to promote home ownership and properties in less-than-perfect condition are a way for you to purchase a home in an area you desire and fix it up to your liking or flip after the upgrades have been made.

 

When you may want to consider an FHA 203K Rehab Loan

  • If you’re a borrower who is buying a new home that is considered a fixer-upper
  • If you’re a buyer who wants to finance the cost of purchasing a home and needed improvements into a single loan.
  • If you might not otherwise qualify for a conventional construction loan.

Loan Features

  • Enables you to combine the home purchase and repair costs into one loan
  • A good way for buyers to purchase a home that needs some repairs using a single loan.
  • Low down payment requirements
  • A 203K mortgage follows general FHA loan requirements.
  • You have two options when considering a FHA 203K loan
    • Standard FHA 203K – For larger improvements
    • Limited FHA 203K – For smaller improvements of up to $36,000
  • Borrowers can qualify for 203K rehab loans, which require the same standards as a general FHA transaction.

    Contact Us To Discuss Your Loan Options, Today!

    We’re looking forward to helping you find the best loan options for your specific needs