The FHA 203K is a 30 year home rehabilitation loan for a primary residence. It enables homebuyers and homeowners to finance either:
FHA 203K fills another unique and important need for homebuyers. When buying a house that is in need of repair or modernization, homebuyers usually have to follow a complicated and costly process:
The interim acquisition and improvement loans often have relatively high interest rates and short repayment terms. However, FHA 203K offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan, to cover the acquisition and rehabilitation of a property. The FHA 203K loan saves borrowers time and money.
Virtually any kind of improvement is eligible provided it becomes a permanent part of the real property and adds value.
Loan Purpose Purchase – Up to 96.50% Loan To Value
Purchase & Rehabilitate existing structure completed for > 1 year