FHA 203k Renovation Loans
FHA's Streamlined 203k program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. Homebuyers and homeowners can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Home buyers can also make these repairs or improvements before listing their home on the market or to make a new home move-in ready.
With a Full 203k loan, the amount of renovation covered by Section 203k insurance may range from relatively minor (a minimum of $5,000) to complete reconstruction, where a home is demolished or will be destroyed as part of rehabilitation. The U.S. Department of Housing & Urban Development also requires that properties financed under this program meet certain basic energy efficiency and structural standards.
As part of the Full 203k loan requirements, borrowers can do the following with Section 203k financing:
- Structural alterations & reconstruction*
- Modernize & improve home’s function
- Eliminate health & safety hazards
- Make changes to improve appearance & eliminate obsolescence
- Recondition or replace plumbing; install well &/or septic system
- Add or replace roofing, gutters, & downspouts
- Add or replace floors &/or floor treatments
- Major landscape work & site improvements
- Enhance accessibility for a disabled person
- Energy conservation improvements
*Only homes with the existing foundation system remaining in place are eligible for complete reconstruction coverage.
Full 203k insured loans can also finance the rehabilitation of the residential portion of a property that also has non-residential uses and can also cover the conversion of a property of any size to a one-to-four-unit structure.
If you are interested in learning more about the Streamline 203k and FHA 203k renovation loans, contact F&B Financial Group today to see what renovation loan option is best for you.