Finance home repairs or remodels at closing
with a FHA 203(k) Loan
Are you looking at a house with “good bones” but it needs a lot of work? The FHA 203(k) loan program provides funds for renovations and repairs of your primary residence by financing the after-improved value rather than the present value of the home1. Qualified borrowers receive a single loan with one closing!
•Finance 100% of weatherization/energy efficient improvements2
•Finance construction costs with a single closing
•You choose the contractor (must meet lender approval qualifications)
•A wide variety of repairs can be included, roofs, kitchen/bath remodels, flooring, paint, room additions, handicap accessibility, new appliances, plumbing/electrical repairs and lead-based paint abatements3
- The Limited and Standard FHA 203(K) programs are based on the purchase price plus repairs or 110% of the after improved value whichever is the lesser. The FHA Limited 203(k) is limited to $35,000 for repairs and renovation. Repair and renovation costs must also include fees and contingency. Program is capped by county loan limits.
- Up to an additional $8,000 may be available. Energy Efficient Mortgage Program improvements must reduce energy expense of a home to qualify. Examples of qualifying improvements include central heating/cooling, replacing wall heating units, test and seal ductwork, dual pane or Low-E windows and sliding doors, exterior doors and sunscreens, attic and wall insulation and water heater replacement.
- Structural repairs or improvement qualify on the FHA Standard 203(k) program only.