FHA 203k Down Payment Requirements
Regardless of where you are purchasing a property, the downpayment requirements for an FHA 203k Loan are the same as a standard FHA mortgage that does not include a "Renovation Package,"
The difference between the down payment on a regular FHA loan and a 203k is that the 203k loan requires a minimum 3.5% down payment based on the total amount of the home’s purchase price plus the cost of repairs.
Obviously, figuring out the exact amounts for rehab costs and loan fees will be something that your 203k Lender and Rehab Consultant will need to be a part of, especially since there may be before and after repair values, mortgage insurance premiums and interest rate discounts to consider.
Bottom line, the main point to pay attention to when figuring your budget for a down payment on a purchase that is using an FHA 203k loan for home financing is that the total amount you will be responsible for is 3.5% of the total loan amount, which will be due at the time of closing.
Did You Know?
A rehab loan can be used for a purchase or refinance, and you do not have to be a first-time homebuyer to use it.
Contact Us today at 877-598-2897 to see how a 203(k) can increase the value of your property.
We Are Not The Government.
RehabLoanNetwork.com is an expert network of 203k lenders, contractors, consultants and real estate agents. This website is meant for informational purposes only.