FHA 203k Loan Guidelines – Financing for Fixer-Uppers
Did you find a fixer-upper? Not sure how to finance repairs?
Finance House and Repairs
If you find a house in need of repairs, an FHA 203K rehabilitation loan allows you to finance the repairs and the house purchase in one loan.
A bedroom addition, a family room extension, an upgraded kitchen or a bathroom remodel are just a few of the options available to you with an FHA 203K rehabilitation loan. Click here to learn more about regular FHA 203K loans (for larger scale rehab projects), Streamline FHA 203K loans (for smaller rehab projects), and eligible repairs and properties under each program.
Five Reasons to Consider FHA 203K Loan
- Turn an average home into a dream home. Qualifed homebuyers can improve less-than-perfect homes in desirable locations or address property shortcomings immediately without draining your savings.
- Make the home your own – removing the previous owner’s style. Everyone has different tastes – you don’t have to live with the previous owner’s choices.
- Fix things the previous owner may have ignored – windows, roof repairs, etc.
- Get more house for the money. REOs and foreclosures are still a large part of the real estate inventory. Buyers can take advantage of reduced home prices.
- Rolling rehabilitation costs into the mortgage allows borrowers access to repair funds at lower rates.
FHA 203K Program/Property Guidelines
- Down payment – 3.5% of total amount of purchase plus costs of repairs – gift funds are allowed
- Seller contributions – seller may contribute 6% of purchase prices toward closing cost and prepaids
- Purchase of owner occupied primary residence
- All properties must be at least one year old
- New construction is not eligible
- Commercial properties are not eligible
- Required $5,000 minimum renovation cost
Additional restrictions may apply and FHA 203K loan guidelines are subject to change. Please contact a licensed Inlanta Mortgage loan officer for more information on FHA 203K Rehabilitation loans.
More Information on FHA 203K Loans
Contact a licensed Inlanta Mortgage loan originator for more information on FHA 203K rehabilitation loans. Use our branch locator to find an office near you – or apply online now.
About Inlanta Mortgage
Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.
Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS #1016. Inlanta Mortgage is a proud recent recipient of a Top Mortgage Lenders 2012 Award from Scotsman Guide and was recently recognized as one of the Fastest Growing Firms in the Milwaukee-Area by the Milwaukee Business Journal.