FHA 203(K) Renovation Loans
Rehab/Renovation Loans that Change Your House into Your Home
At the Frederick branch of Goldwater Bank, our local mortgage lenders understand that the house you found may be in the perfect location, but it may not actually be perfect itself. Maybe the flooring needs to be replaced, maybe there’s no air conditioning, or the kitchen leaves much to be desired. If you just can’t seem to walk away from the potential of what could be, an FHA 203(k) loan may be the perfect answer.
By requiring a minimum down payment of just 3.5%, this Federal Housing Administration rehab loan program allows borrowers to roll renovation costs into their home loan, making payment affordable and convenient. A variety of remodeling and rehab projects can be completed, though restrictions do apply. However, most major items such as roofing or foundation work are allowed, as are a number of cosmetic changes and additions.
The Benefits of an FHA 203(k) loan include:
- One closing process. The funds marked for rehab are disbursed on a draw basis as construction is completed after closing.
- Loan amounts of up to 110% of “after improved value” are available.
- Convenient closing of the 203(k) loan can occur before construction begins.
- Buyer works personally with a HUD consultant to assess property needs and repair estimates.
By guiding you every step of the way, our team strives to help you through the process of construction, remodeling, and renovation loans, helping you discover the opportunities in lending that are meant to help you create the home of your dreams. Find out more by contacting our your local mortgage lender and scheduling a financing consultation today. Call us or use the form to the right!