FHA 203k loans are designated for houses that are damaged or in need of rehabilitation. The loan covers the cost of the property and the cost of necessary home repairs. The down payment requirement is usually low. Homeowners with homes in need of improvement can also refinance with these loans. A vast range of repairs can be funded.
There are two types of 203k loans: regular and streamlined. Regular 203k loans are for homes that need structural repairs, or the total amount of repairs and costs is larger then $35,000. Streamlined loans are for those that need non-structural repairs and must be under $35,000 of repairs.
The FHA has specific guidelines as to which types of repairs qualify for 203k loans. The lender will also stipulate which repairs you can make.
Allowable repairs include:
- Disability access
- Heating, ventilation and air conditioning
- Roofing and flooring
- Energy conservation
- Kitchen remodeling
- New appliances
- Room additions
- Decks and patios
- Bathroom remodeling
- Room additions or second-story additions
- New siding
- Finishing an attic or basement
- Site grading
We have extensive knowledge in remodeling using 203k loans both streamline and full. We work with most of the nations 203k lenders. Our team is trained to provide appropriate documentation to the lenders to keep the project smooth.