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FHA allows for Repairs

The FHA 203K mortgage is ideal for the rehabilitation of HUD, REO, and Short Sale Properties.

The FHA 203k loan program is the primary government program for the rehabilitation and repair of single family properties. Basically, it's nothing more than a glorified home improvement loan. The 203K mortgage is a terrific tool for community and neighborhood revitalization.

When using the FHA 203k rehab loan, home buyers can target homes intended to be used as a primary residence that need work. Sources for these properties include bargain real estate via REO (property held by banks), qualified homes in the HUD inventory, and homes sold as a short sale property via the MLS.

203K mortgage is not just for the purchase of a home. Qualified homeowners can successfully use the FHA 203K Program to make many improvements to a primary residence. Again, it is basically a construction loan for the improvement of existing properties.

The qualifying standards are no different than traditional FHA Purchase loan guidelines -- which can make getting an FHA 203K rehab loan a very attractive financing vehicle.

Where Can You Use a 203K
You can utilize the FHA 203K loan program to accomplish rehabilitation and/or improvement of an existing HUD approved property:

  • To purchase a qualifying property and the land on which it is located and rehabilitate it;
  • To purchase a qualifying property on another site, move it onto a new foundation on the mortgaged property, and rehabilitate it;
  • To buy a bank REO-qualifying property that requires significant improvements (rehab) in order to bring the home to FHA loan standards;
  • The 203K program can be used during the purchase of a qualifying home being sold as a "short sale" property ( i.e. pre-foreclosure) that requires repairs to bring the home into compliance;
  • To refinance an existing home mortgage and make one or multiple home improvements to the home owner's qualifying property.

Contact us today to begin your FHA 203K Loan process!

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