What is a 203k Rehab Loan?
A 203k loan is an FHA Loan that allows you to purchase a home that needs renovations or just some updating and get one loan that includes funds for the purchase AND all rehab costs, inspections fees and even 6 month’s carrying costs. After all, if you can’t live in the home, HUD does realize that most people cannot afford 2 mortgage payments or paying rent and a mortgage payment while you wait for the work to be completed. HUD allows you to include up to 6 month’s of your mortgage payments in your loan so you do NOT have to pay your mortgage out of pocket for the first six months.
