The Must-Have FHA 203k Renovation Loan Handbook for Home Buyers and Home Owners. Learn more ...
For those of you who would like to explore more of the details, below is a collection of some of the more in-depth guidelines and information from HUD regarding the FHA 203k Renovation Loan. For additional detail, we invite you to also explore our FHA 203k FAQ's.
Remember, the fastest and easiest way to learn more about your own ability to qualify and how much home you can afford is to let us connect you with a specially trained 203k Specialist mortgage professional from our national network.
(As someone who pays attention to details, you'll notice below that this information from HUD uses the official "203(k)" which we simplify to "203k" for our purposes in other areas of our website.)
Single family homes along with duplexes, triplexes and four-plexes that are at least one year old are eligible under the FHA 203(k) program. The home buyer must be an owner occupant; investors do not qualify for the program. Condominiums that have been approved by FHA are also permitted under the program.
The 203(k) program can be used in one of three ways with one-to-four unit dwellings:
With the purchase of a condominium:
A FHA 203(k) insured loan can also be used to purchase a mixed-use residential property provided the rehabilitation funds are used solely to improve the residential part of the property. The purchase of HUD-owned properties is permitted as well, with certain restrictions attached.
FHA 203(k) loans are available in two types:
Once the homebuyer finds a property to purchase, the process of obtaining a loan insured under the provisions of the 203(k) program begins in earnest. The mortgage must be the first lien on the property being improved.
The maximum mortgage amount allowable under the 203(k) program is the lesser of:
To qualify as a homebuyer under the FHA 203(k) program requires that the buyer:
In addition to the purchase of a home, the FHA 203(k) program is also available to homeowners who want to refinance their principal residence, consolidating all existing loans and have funds available for renovation purposes at the same time.
The FHA 203(k) program allows the homeowner to: