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203(k) | Overview

The FHA 203 (k) loan allows a borrower to purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the projected market value of the property when all repairs are completed.

 

An important tool for community and neighborhood revitalization, the FHA 203(k) loan offers flexible qualifying and low down payments:

  • FHA standard guidelines
  • FHA down payment (3.5%)
  • Flexible credit qualifying
  • Purchase or Refinance and renovations all in one loan
  • Purchase mortgages based on after improved value
  • One closing and then repairs begin


Eligible Repairs:

  • Changes for improved functions and modernization
  • Elimination of health/safety hazards
  • Changes for aesthetic appeal
  • Plumbing, heating air conditioning and electrical upgrades
  • Well and/or septic repairs
  • Roofing, gutters and downspouts
  • Flooring, tiling and carpeting
  • Energy conservation improvements
  • Access for the disabled


The FHA 203(k) is the ideal product for distressed homes for sale. Contact your REMN Loan Originator to see how the 203(k) is the perfect loan for the “almost perfect” home.

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