203K Loans

Interior of a house being remodeled - FHA 203K Loans FHA’s 203k loan program is meant for people who want / need to borrow money to repair / remodel a 1-4 unit property that is (or will be) their primary residence.

There are two types of 203K’s:

    1. streamline
    2. full.

The streamline limits the repair money to $35,000 and allows for no structural work.

The full 203K has no repair money limit (but the mortgage and repair funds cannot exceed the county limit) and allows for structural repairs (anything, as long as the foundation remains in place; so not quite fit for building a brand new house, unless it will incorporate the existing foundation structure).

The streamlined 203k does not requires an FHA consultant be involved; the full 203k does.

The consultant will determine what must be done and what is a good idea or desired but not necessary.

No matter what the borrower wants, the items the consultant deems necessary must be repaired / renovated