The FHA 203K renovation loan gives eligible homeowners the power to finance major upgrades to their homes while keeping the costs as low as possible. You can gain access to a large amount of funding for repair and renovation while escaping duplicate costs of taking out more than one loan.
The government-insured FHA 203K helps home loan customers who want to repair or remodel a primary residence at the time of purchase or refinance. The lender rolls the money to finance (or refinance) a home and complete repairs into a single home loan. You can get a fixed rate with only a 3.5% down payment.
By going with a single loan, you can skip paying the extra expenses that a second loan would require. You also miss the higher interest rates associated with short-term lending. Your advantages include:
To be eligible, the residence must be at least one year old and fall within local Federal Housing Authority price guidelines. The project must cost at least $5,000. The cap is set at an additional 50% of the appraised value after completed repairs, including contingencies.
The FHA 203K, in particular, appeals to homeowners and homebuyers with limited repair budgets. Older structures with aging plumbing, leaky roofs or worn-out floors can run up costs quickly. With this help, qualified owners can make inevitable, expensive changes while limiting the blow to their personal savings.
A list of standard upgrades for FHA 203K funding can be found online. Among the ways the program can help buyers like you:
The limited FHA 203k program handles smaller projects. It can help homeowners with improvements that cost up to $35,000. There is a maximum value that determines property eligibility.
These plans can help you make minor changes such as:
To find out how these products can help you, please contact a PrimeLending home loan expert near you and ask how you might be able to benefit from an FHA 203k plan.