• The appraised “as-completed” value of the home after renovations If you're renovating a home you already own: You can borrow up to 75% of the lesser of: • The appraised “as-completed” value of the home after renovations FHA 203k The FHA 203(k) is a renovation loan insured by the Federal Housing Administration. It allows you to finance both the purchase (or refinance) of a primary residence plus the cost of repairs or improvements with a single loan and one monthly mortgage payment. It's ideal for buyers or owners looking to fix up a home that might not qualify for a standard mortgage due to its condition. Loan Type: Government-backed (FHA) Purpose: Purchase + renovate or refinance + renovate Property Type: Primary residence only Down Payment: As low as 3.5% Credit Score Minimum 580 (some lenders may require higher) Loan Limits Based on FHA county loan limits Mortgage Insurance Required: Upfront + Monthly MIP Contractors Must use licensed contractors Luxury Upgrades Not allowed (e.g., pools, hot tubs)
There are two typed of 203k loans:
Limited 203k (f d 203k (formerly Streamlined) • For minor repairs and improvements (up to $35,000 in renovation costs) • No structural changes allowed • No FHA consultant required • Common uses: HVAC replacement, paint, flooring, new appliances, roof repairs
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