FHA 203k Renovation Loan

House Need Work? FHA 203k – The ReHab Loan

It’s not unusual, especially in distressed real estate markets, to find homes have no appliances, trashed rugs and at least some damage. After all, homeowners that leave homes because of foreclosures and short sales have little incentive but common decency to deliver the home in great shape to the next buyer or the bank.

But the good news is that intrepid home buyers looking for a deal can finance these improvements. In a streamlined 203K loan, you can finance up to $35,000 (subject to change) in improvement and rehab projects, such as new kitchen cabinetry, appliances and floor coverings. The Standard FHA 203k loan is for more complex remodeling which might require architects and engineers, and potentially more expense.

Loans are still subject to the general downpayment and loan qualification guidelines and requirements of an FHA loan. This loan is for owner occupants that want to put out as little cash as possible to buy a home.