What is an FHA 203(k) Renovation Loan?
An FHA 203(k) or Conventional Renovation Loan can be used to purchase or refinance a primary residence, regardless of condition of the property. These loans are designed for people who want to finance a mortgage as well as the funds needed to repair and remodel the property all in a single loan with one application, one closing, and one monthly payment.
Both these types of loans can also be used to refinance a fixer-upper along with the funds needed to repair and remodel the property. And once again, this is all done with a single loan with one application, one closing, and one monthly payment.
An FHA 203(k) Renovation Loan offers the following features and benefits:
- One loan, one closing, and one payment for both the mortgage to purchase or refinance the home and the funds needed for major and minor improvements.
- Competitive long-term fixed or adjustable interest rates.
- The Conventional Version has a max loan amount of 417k.
- The FHA Version has a max loan amount of $271,050.00.
- Low down payments starting at 3.5% of the property acquisition and repair costs.
- Less-strict FHA qualification requirements.
- You may be able to finance your mortgage payments into the loan if the home is uninhabitable during the rehabilitation period (up to 6 months).
- Includes funds to cover potential expenses and fees.
- You may be able to finance the cost to rent another home during the renovation period.
- The loan amount is determined by using the after-improved value!
Here at The Equity Finders, our primary goal is to work with you to find a house “with equity,” customize it to fit your needs, and turn it into the home of your dreams! And our exclusive Smart Map Technology allows you to do just that. You can get details on how to use our Smart Map right here!
For more information about FHA 203(k) Renovation Loans, please feel free to contact our friend and associate Alex Kirkland at Academy Mortgage right here!
Questions? Comments? Suggestions?… Please don’t hesitate to contact us here!
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