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FHA 203k Eligible Properties

Eligible-203k-PropertiesFHA 203k Eligible Properties FHA’s 203(k) loan program can be used to finance a single family home as well as 1-4 unit properties.

While most people consider a 203k loan to fix up a foreclosure or distressed short sale that needs serious renovation work, FHA 203k loans can be applied to any property that meets loan limit guidelines. Updating a kitchen, adding fresh carpet or making energy efficient upgrades are a few examples of how you can take advantage of a 203k loan.

Eligible Property Types

Following specific guidelines, it can also be used to convert a building from a larger number of units down to 4 or less, as well as improvements (interior only) on an FHA-approved condominium unit.

Although FHA 203(k) loans are only offered for owner-occupied properties, provisions allow for the financing of mixed-use buildings, such as those with retail or commercial space combined with residential. In these cases, the 203k loan can only be used for the residential portion of the building.

Eligible 203k Rehab Projects

  • 1-4 Unit Properties
  • Conversion of a larger number of units down to 4 or less.
  • Interior renovations on an FHA-approved condo (subject to specific guidelines).
  • Renovation of the residential portion of a mixed-use building, which combines retail or commercial space with residential.
  • Uninhabitable properties (a tear-down), as long as part of the existing foundation will remain.
  • Relocation of an existing house to a new foundation.

*All properties are subject to specific guidelines.

Using FHA 203(k) to Purchase HUD Foreclosures:

FHA 203(k) loans can also be used to purchase HUD-owned foreclosures that have been designated by HUD as eligible for the 203(k).

If an eligible HUD foreclosure has been purchased through other means, a 203(k) loan can be made up to six months after the close, and repair funds made available to the owner.

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 (833) 600-0036 to see how a 203(k) can increase the value of your property.

Which Rehab Loan Is Right For You?

(833) 600-0036

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