How do FHA 203K Home Improvement Loans / Remodeling Loans Work WHAT IS A 203 (k) LOAN?
FHA 203K Home Improvement Loans / Remodeling Loans Basics WHAT ARE FHA 203K Home Improvement Loans / Remodeling Loans? The FHA 203K Home Improvement Loans / Remodeling Loans is a fully disbursed loan which allows a borrower to purchase or refinance a property and finance the cost of rehabilitation with one loan. Because it is fully disbursed at closing, the FHA 203K Home Improvement Loans / Remodeling Loans can be insured by HUD as soon as the loan closes. The mortgage amount for these loans is based on the projected value of the property with the work completed, taking into account the cost of the work. HUD has taken a strong position to encourage this program and the loan is now easier to originate and close than ever before. Use a consultant. FHA 203(k) Home Improvement Loans / Remodeling Loans Advantages • Non-profit organizations are eligible with only 5% down payment and can buy multiple properties • Finance up to 6 months mortgage payments • Special HUD down payment programs • M
