It is a form of home financing or refinancing that enables home buyers and homeowners to combine both costs associated with the real estate itself and expenses due to be incurred through renovation into a single mortgage. Basically it allows the borrower to ROLL RENOVATION COSTS into the mortgage.

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The loan takes into consideration the AFTER RENOVATED VALUE to determine the value. A client obtains a renovation BID from a contractor and that bid amount and scope of work are given to the appraiser to come up with and ARV. Then the lender includes the renovation costs, plus other allowable costs into the loan.

Any upgrade or enhancement that improves the actual functioning or attractiveness of the property that is not considered a LUXURY item. Plus any HEALTH & SAFETY or HABITABILITY item that is considered and FHA Minimum Property Standard.

Luxury items such as a pools, hot tub, outdoor firepit or BBQ pits are not deemed eligible expenses by the FHA under the terms of a 203(k) loan. As a general rule, any upgrade or improvement that does NOT improve the actual functioning or attractiveness of the property won’t be covered under an FHA 203(k) loan.

Owner Occupied Properties. 1 to 4 units as long as the borrowers primary residence is one of the units.

Certain types of properties may also be prohibited from application, such as mixed-used properties (which combine residential and commercial space) and co-ops. Be sure to do your research before applying for an FHA 203(k) loan. Some properties do NOT qualify. An experience 203K Consultant can help.

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As with any personal loan or mortgage, home buyers or homeowners must meet certain minimum requirements in order to qualify for an FHA 203(k) loan. These requirements are similar to normal FHA loan requirements.

FHA allows a loan amount up to 110% of the After Repaired Value. This is helpful when renovating items that do not add much value to an appraisal. This rule gives the borrower a little more wiggle room vs. using a traditional mortgage or other type of renovation loan.

YES, it does allow homeowners to refinance and roll renovation costs into the new mortgage.

MAKEOVER can help you navigate the 203K Process

Just like all loans there are Pros & Cons. Depending on your needs and qualifications an experienced loan officer will be able to help you evaluate if the 203K or another loan is a better option for you.

MAKEOVER makes it easy to find a local Loan Officer

MAKEOVER has a large network of experienced renovation loan lenders. The easiest way to find one in your local area is to request an introduction from MAKEOVER.

MAKEOVER makes it easy to find a local Contractor

MAKEOVER has a large network of experienced renovation loan contractors. The easiest way to find one in your local area is to request an introduction from MAKEOVER.

MAKEOVER makes it easy to find a local Consultant

MAKEOVER has a large network of experienced renovation loan FHA 203K HUD Consultants. The easiest way to find one in your local area is to request an introduction from MAKEOVER or simply Order A Consultant using the FIND A LOCAL CONSULTANT button below.

MAKEOVER makes it easy to find a local Realtor

As with any personal loan or mortgage, home buyers or homeowners must meet certain minimum requirements in order to qualify for an FHA 203(k) loan. These requirements are similar to normal FHA loan requirements.

Provides home buyers or homeowners seeking to purchase or refinance a property with a maximum of $35,000 for renovations. Major structural repairs are NOT allowed .

Used for larger jobs (exceeding $35,000), can be used to cover major structural repairs. Renovations must cost a minimum of $5,000. An FHA 203k HUD consultant must be hired to oversee the project and renovation process.