Myth #6 about the FHA 203k: Only Certain Properties Qualify

You're right! There are misconceptions about which properties qualify for FHA 203k loans.



Here's a breakdown of eligible properties:

• Residential properties: FHA 203k loans are for financing the purchase or refinance of residential properties that need renovations.
• Types of residences: This includes single-family homes, townhomes, and certain types of condominiums and manufactured homes.
• Minimum property age: The property must have been completed and settled for at least one year before renovation.
• Multi-unit dwellings (restrictions): You can use an FHA 203k to convert a single-family dwelling into a two-, three-, or four-family residence. However, you cannot finance the renovation of an existing multi-unit dwelling with more than four units.
• Investment properties not allowed: FHA 203k loans are for primary residences only, not investment properties.

In summary, FHA 203k loans offer flexibility for financing the purchase or refinance of a variety of residential properties that need renovations, as long as they meet the program's requirements.