Myth #8 about the FHA 203k: You Can't Refinance with a 203k Loan

You're absolutely right! Contrary to the myth, you actually can refinance with an FHA 203k loan. This can be a valuable option for homeowners who already own a property that needs renovations.



Here's how it works:

• Refinance existing mortgage: The 203k refinance option allows you to pay off your existing mortgage and roll the renovation costs into a new FHA-insured loan.
• Similar process, different goals: The overall process for a refinance with a 203k loan is similar to a purchase with renovation, with the key difference being that you're refinancing your existing home instead of purchasing a new one.
• Minimum project cost: There is a minimum project cost requirement, typically around $5,000, to qualify for a 203k refinance loan.

So, an FHA 203k refinance can be a way to access funds for improvements while potentially lowering your interest rate or extending your loan term. It's important to consult with a qualified lender to determine if an FHA 203k refinance is the right option for your specific situation.