• Scott Kepler

    NMLS #833792

    (813) 444-8537


  • What Is an FHA 203K Renovation Loan?

    The FHA 203K renovation loan gives eligible homeowners the power to finance major upgrades to their homes while keeping the costs as low as possible. You can gain access to a large amount of funding for repair and renovation while escaping duplicate costs of taking out more than one loan.

    The government-insured FHA 203k renovation loan helps home loan customers who want to repair or remodel a primary residence at the time of purchase or refinance. The lender rolls the money to finance (or refinance) a home and complete repairs into a single home loan. You can get a fixed rate with only a 3.5% down payment.

    Down Payment & Closing Costs Assistance Programs

    Buying a home may be more affordable than you think.

    By going with a single loan, you can skip paying the extra expenses that a second loan would require. You also miss the higher interest rates associated with short-term lending. Your advantages include:

    One loan amount
    One interest rate
    One payment
    One “as-complete” value
    One round of closing costs
    Can an FHA 203k renovation loan help fix my house?

    To be eligible, the residence must be at least one year old and fall within local Federal Housing Authority price guidelines. The project must cost at least $5,000. The cap is set at an additional 50% of the appraised value after completed repairs, including contingencies.

    The FHA 203k, in particular, appeals to homeowners and homebuyers with limited repair budgets. Older structures with aging plumbing, leaky roofs or worn-out floors can run up costs quickly. With this help, qualified owners can make inevitable, expensive changes while limiting the blow to their personal savings.

    A list of standard upgrades for FHA 203k renovation loan can be found online. Among the ways the program can help buyers like you:

    Make structural changes and reconstruction
    Modernize or remodel rooms
    Repair or replace plumbing, roofing and floors
    Improve function, appearance, landscaping, energy conservation, health, safety or disabled accessibility
    Streamlined FHA 203K

    The streamlined FHA 203k program handles smaller projects. It can help homeowners with improvements that cost up to $35,000. There is a maximum value that determines property eligibility.

    These plans can help you make minor changes such as:

    Fix or replace roofs, gutters, downspouts, flooring, septic system, well, exterior decks, patios, porches, windows and doors
    Upgrade existing HVAC, plumbing and electrical systems
    Remodel or finish basement or kitchens, without structural work
    Paint, weatherize and waterproof
    Purchase and install certain appliances
    Improve disabled accessibility
    Fight lead paint issues

    To find out how these 203k renovation loan products can help you, please contact us today!