FHA 203k Loan

The FHA 203k is a renovation loan program that provides funds for both the purchase and renovation of a home. There are two types of an FHA 203k loan. The first is normal 203k, which is given for properties that need structural repairs such as a new roof or a room addition. The second is the streamlined203k, which is given for non-structural repairs such as painting and new appliances. Any foundation or Mold or structural issues will force it into a Normal or Cosultant 203K.  The minimum Loan Amount is $5000.

It is not a bad idea or very expensive to simply go with a Consultant no matter what, they do a good job of keeping the GC on task and watch costs like a hawk. Certain things cannot be included, add a Pool where one was not there before.

 

203K is a very handy loan if a home meets this formula:

Acquisition Price Plus Repairs = Current market value + 10%

 

Call me or email me if you need more specific info or clarification on 203K