FHA Loans – FHA 203 K Rehabilitation Loan
FHA provides rehabilitation mortgage loans for owner-occupants of real estate to
- finance the rehabilitation of an existing property;
- finance rehabilitation and refinancing of the outstanding indebtedness (mortgages) of a property; and
- finance the initial purchase and rehabilitation of a property.
The FHA 203(k) can be used with 1-4 family dwellings, condominiums and HUD Homes. There is a minimum requirement of $5,000 in repairs. Unfortunately, Co-ops are not eligible.
FHA 203(k) can be used to bring illegal dwellings into code compliance. Mixed use residential / commercial properties may also be eligible. A burnt out shell, incomplete shell or empty foundation is eligible for 203(k) financing provided it is over 1 year old.
FHA will lend up to 98.15% of the future value of the dwelling after all completed repairs but you cannot exceed the maximum FHA loan limit for the area in which the property is located in.
Search the maximum FHA loan limit for your area by clicking >> Here
With a basic understanding of the FHA 203k loan you may now learn if you qualify by clicking FHA Loan Qualifying.