An FHA 203K loan combines your purchase and renovation costs into one mortgage. Get a free quote today.
An FHA 203K loan is a loan backed by the federal government and given to buyers who want to buy a damaged or older home and do repairs on it. Here's how it works: Let's say you want to buy a home that needs a brand-new bathroom and kitchen. An FHA 203K lender would then give you the money to buy (or refinance) the house plus the money to do the necessary renovations to the kitchen and bathroom.
Often the loan will also include: 1) an up to 20% contingency reserve so that you will have the funds to complete the remodel in the event it ends up costing more than the estimates suggested and/or 2) a provision that gives you up to about six months of mortgage payments so you can live elsewhere while you're remodeling, but still pay the mortgage payments on the new home.
We're here to make the 203K home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our FREE 203K Loan Qualifier.
We'll help you clearly see differences between loan programs, allowing you to choose the right one for you.
An FHA 203K loan lets you buy or refinance a home and include the cost of repairs or upgrades in the same mortgage. Instead of paying cash for a new kitchen or taking out a second loan, it’s all in one.
There are two versions. The Limited 203K covers non-structural work up to $75,000, like kitchens, bathrooms, flooring and roofs. The Standard 203K handles larger projects, including structural repairs, and requires a HUD consultant. Both usually include a contingency reserve for cost overruns. If the home isn’t livable during the work, the loan can also cover up to six months of mortgage payments.
A strong fit if you: found a home in the right location that needs work, want to renovate without draining your savings, or want to add value from day one.
Here's how our home loan process works:
You can buy with as little as 3.5% down and finance both the home and the improvements together. The down payment is based on the combined cost of the home and the renovations. It’s one of the simplest ways to turn an older home into the one you actually want.
Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below:
