An FHA 203(k) Mortgage is a mortgage and home improvement loan all in one. It provides borrowers with an affordable, stable financing solution that combines the purchase or refinance of the home along with the costs of the improvements into a single loan. This loan has simpler qualifying terms and offers the opportunity to finance not only properties that need cosmetic upgrades but also properties that may not normally qualify for mortgage financing.

The 203K Loan Uses:

• To purchase a property and renovate it;
• To purchase a stick built home on one site, move it onto a new foundation, and rehabilitate it;
• To refinance existing mortgages secured against the subject property and rehabilitate it; or
• To prepare a property to be placed on the market

Opportunity for Borrowers who

• Are interested in purchasing a property that needs repairs
• Are existing homeowners who need additional funds to rehabilitate their property
• Want to save time and money by financing the purchase or refinance with the cost of the repairs
• May not qualify for a conventional loan
• Live in disadvantaged neighborhoods

Typical Improvements include

Limited 203K:

• Roofs, gutters, and downspouts
• Upgrade or Replace existing heating, ventilation, and air conditioning systems
• Upgrade or Replace Plumbing and Electrical systems
• Flooring (Non structural only, repair or replacement)
• Painting Interior/Exterior
• Lead-based paint stabilization or abatement of lead-based paint hazards
• Minor remodeling that does not involve structural repairs, Bathrooms and kitchens
• New Appliances
• Mold Abatement or Termite Active Infestation repairs (tenting, etc.)
• Repair or replacement of septic tank

Standard 203K:

• Significant repairs
• Removal of existing structure and rebuilding a new structure in its place.
• Additions (must be attached to main structure)
• Structural repairs