What is a 203K Loan? The FHA 203K Rehab loan is a cost-effective loan which allows a buyer to finance necessary repairs and or desired home improvements while utilizing a 3.5% down payment FHA loan. It allows a single loan to facilitate a purchase or refinance along with financing renovations. It’s the perfect program for a property that needs a little work and the buyer doesn’t have the cash to pay for improvements.
You can use a FHA 203(k) Rehab Home Loans to turn your "Almost Perfect" Home into your Dream Home. If you want to buy a home that needs repair or finance needed repairs to your current home, the Section 203(k) loan program by the U.S. Department of Housing and Urban Development (HUD) may be a good option for you. This program allows you to finance the purchase of a house—or refinance your current mortgage—and include the cost of its repairs through a single mortgage.
Eligible property types are: single family detached homes, single family attached (like row houses) town homes and condominiums. Cooperatives (Co-ops) are not allowed.
Types of Improvements Include:
Note: Structural alterations and luxury items such as swimming pools and barbecue pits are not eligible. The Section 203(k) Loan Program - Turning “Fixer-Uppers” into Dream Homes (Lender guidelines apply).