Is an FHA 203k Rehab Loan Right For You?

If you have been passing up on homes that need repairs because of the lack of funds to fix them up, then FHA has a program that may be able to help you buy a home.

A lot of first time home buyers are often turned off by a home that needs repairs, but that is often where you find the best deals and most affordable homes. With FHA's Rehab Program you can get all repairs completed and have a seemingly new home.


How an FHA 203k Loan Works

  • The rehab portion is added into the original loan balance, resulting in one loan.

  • The amount of repairs can exceed the amount of the original purchase price.

  • The borrower can use the contractor of their choice as long as they are licensed and insured.

  • You can even include new appliances in the rehab loan.

  • The appraiser will also state FHA violations that need to be repaired, helping the borrower in case they overlooked something important.


Eligible Repairs & Improvements

Here is an approved list of repairs / improvements from HUD:

  • Roofs, gutters and downspouts

  • HVAC systems (heating, venting and air conditioning)

  • Plumbing and electrical

  • Minor kitchen and bath remodels

  • Flooring: carpet, tile, wood, etc.

  • Interior and exterior painting

  • New windows and doors

  • Weather stripping & insulation

  • Improvements for persons with disabilities

  • Energy efficient improvements

  • Stabilizing or removing lead-based paint

  • Decks, patios, porches

  • Basement completion and waterproofing

  • Septic or well systems

  • Purchase of new kitchen appliances or washer / dryer


Special Conditions & Terms

  • Borrowers must occupy the property.

  • Work must be completed within six months.

  • Work must be professional.

  • If job requires a permit, borrowers must get a permit and a sign-off.


Requirements to Perform the Work

  • Borrowers can select among licensed contractors.

  • Our company will review the contractor's experience, background and referrals.

  • Our company requires a copy of the contractor's estimate and an agreement between the contractor and borrower.


Disbursement of Payments

  • The contractor will receive the first payment of 50% upfront

  • The final payment of 50% is disbursed after the work is completed and inspected.


FHA 203k Rehab Loan
Purchase a new home or refinance your current mortgage into a secure, fixed monthly payment

Loan Term Rate APR Points More Details
FHA 203k Rehab
 4.625% 5.125% 0.000 View Details

Assumptions:

  • Purchase price is based on $150,000
  • Downpayment is based on 3.5% or $5,250 down (Loan Amount is $144,750)
  • Interest rate is based on a credit rating of 680 or higher
  • Interest rates are subject to change at anytime
  • Monthly payment will vary depending on your situation
  • My services may not be available in all areas



Finding A Realtor You Can Trust



Finding the right Real Estate Agent is crucial while searching for your home. It is important to have the right person working for you and in your best interest.

If you need help I can refer you to one of my trusted Real Estate Agents.

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