Mortgages

FHA 203(k) Rehab

The FHA 203 (k) loan has become an excellent solution in today's market. The FHA 203(k) loan allows the buyer to finance both the purchase and the cost of the repairs/upgrades through a single mortgage. Understanding the way this product works and aligning yourself with an experienced mortgage planner, who knows the intricacies of the FHA 203(k) loan, will ensure a smooth and enjoyable home buying experience. Both type of FHA 203(k) loans are eligible for purchase & refinance.

 

Regular 203(k)

Streamline 203(k)

1. No Maximum For Cost Of Repairs
2. Major Rehab Allowed
3. Requires A General Contractor
4. Requires A Consultant
5. Work Has To Start In 30 Days
6. Work Must Be Complete Within 6 Months
7. Owner - Occupied Properties Only
8. Convert Sfr To 2-4 Unit And Vice Versa
9. Contractor Does Not Get Money Up-front
10. Eligible Properties Include 1-4 Units, Condos, And Townhomes

1. Maximum Amount Of Repairs $35k
2. Minor Rehab/cosmetic Repairs
3. General Contractor Is Allowed But Not Required
4. No Consultant Needed
5. Owner-occupied
6. 3-6 Months To Complete The Work
7. Contractor Can Get 50% Of The Cost Of Repairs @ Closing And Remaining After Work Is Completed