Purchasing A Home With An FHA 203k Loan

It Is True - You can purchase a home that has the exact kitchen, bathroom, flooring, paint.... that you want, without having to pay a premium price.

The FHA 203k Loan is one of a few popular Rehab Lending programs available that allow buyers to finance minor cosmetic or major structural upgrades at the time of purchase through one 30 year fixed, low interest rate home loan.

Most buyers think that a 203k loan is only for completely rehabilitating a distressed foreclosure or short sale that has been seriously destroyed, is in a bad area or requires a lot of work.

However, a 203k loan can be used to finance any property that fits within standard FHA guidelines, regardless of the amount of home improvement work needed or desired.

Best of all, the approval process for a 203k loan follows the same flexible credit score requirements, income documentation and low downpayment as a basic FHA loan.

The only difference is that there are a few extra steps and procedures for qualifying a property, hiring contractors and disbursing funds for completed work. No big deal, provided you're working with an experienced 203k team.

A Few Possible Upgrades Available With A 203k Loan:

• Repair or replacement of roofs, gutters and downspouts
• Repair, replacement or upgrade of existing HVAC systems
• Repair, replacement or upgrade of plumbing and electrical systems
• Repair or replacement of flooring
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Painting, both exterior and interior
• Weatherization, including storm windows and doors, insulation, and weather stripping
• Purchase and installation of appliances (free-standing ranges, refrigerators, washer/dryer...)
• Accessibility improvements for persons with disabilities
• Lead-based paint stabilization or abatement of lead-based paint hazards
• Repair, replacement or addition of exterior decks, patios, porches
• Basement finishing and remodeling, which does not involve structural repairs
• Basement waterproofing
• Window and door replacements and exterior wall re-siding
• Repair or replacement of septic system and/or well
• Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall
• New construction (including room additions)
• Repair of structural damage
• Repairs requiring detailed drawings or architectural exhibits
• Landscaping or similar site amenity improvements
• Any repair or improvement requiring a work schedule longer than six months
• Rehabilitation activities that require more than two (2) payments per specialized contractor

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Very few mortgage and real estate professionals understand how to successfully complete a purchase transaction with a 203k loan, so don't let their inexperience with this excellent renovation home loan program discourage you from purchasing a home with the exact upgrades you want.

If you have specific questions about the details, we have gone out of our way to publish the most comprehensive and well organized FHA 203k loan web site and online information center for your reference. Alternatively, just give us a ring or book an appointment online to speak with one of our experts.