OUR MISSION
We Aim to Help Homebuyers
Buy Low, Build Wealth, & Live Their Dream
People say you can't have your cake and eat it too, but with a 203k loan, you can! A 203k loan is the most efficient way to purchase your dream home at an affordable price and still be able to build equity fast.
Our mission is to help home buyers create 2 provide home buyers with the information, resources, and assistance they need to take advantage of the great opportunity 203k loans provides.
You can learn more about 203k loans and how we can help you by clicking the button below.
WHAT IS A 203K LOAN?
A 203k loan is a loan option that allows you to include the purchase price and repair cost for a home within that loan. For example, if the total purchase price of a home is $200k and it will cost $30k to renovate/repair the property, you can get a single 203k loan for $230,000 in order to cover both of those cost.
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Frequently Asked Questions
Benefits include the ability to finance the purchase and renovation of a home with a single loan, lower down payment requirements (as low as 3.5%), and the ability to transform a fixer-upper into your dream home.
To qualify for a 203k loan, you must meet standard FHA loan requirements, including a minimum credit score (typically 580 or higher), a stable income, and a debt-to-income ratio that meets FHA guidelines. The property you purchase must also be your primary residence.
Eligible properties include single-family homes, multi-family homes (up to four units), and certain condominiums and townhouses. The property must be at least one year old.
The standard 203k loan is for major renovations and allows for a higher loan amount, while the streamlined 203k loan (also known as the limited 203k loan) is for minor repairs and improvements with a maximum repair budget of $35,000.
Eligible renovations include structural alterations, modernization, improvements to eliminate health and safety hazards, changes that improve appearance and eliminate obsolescence, reconditioning or replacing plumbing, installing a well and/or septic system, roofing, flooring, energy conservation improvements, and accessibility improvements for disabled persons.
Yes, the loan amount is subject to FHA loan limits in your area, which vary by county. Additionally, the loan amount includes the purchase price of the property plus the cost of renovations but cannot exceed 110% of the projected value of the property after improvements.
Downsides include a longer and more complex loan process, higher closing costs, the need for additional paperwork and inspections, and the requirement to use licensed contractors for all work. Additionally, interest rates may be slightly higher than for conventional loans.
The minimum down payment on a 203k loan is 3.5% of the property purchase price and the cost of renovations. This is based on the FHA's standard down payment requirement for most of its loan programs. For example, if you are buying a home for $200,000 and planning $50,000 in renovations, the total amount would be $250,000, and the minimum down payment would be 3.5% of that total, which equals $8,750.
No, a 203k loan cannot be used for an investment property. The property being financed with a 203k loan must be the borrower's primary residence. The FHA requires that borrowers occupy the home as their primary residence within 60 days of closing/renovations being completed and continue to live in the property for at least one year. This requirement is intended to help homeowners improve their living conditions rather than benefit investors looking to purchase and renovate properties for resale or rental purposes.
No, you do not have to move into your 203k loan-purchased home during renovations. In fact, it's often impractical or unsafe to live in the home while major renovations are being completed. However, you are required to occupy the home as your primary residence within 60 days of the completion of the renovations. This means you should plan your move-in date accordingly, considering the expected timeline for the renovation work.
Not all lenders offer 203k loans, so it is important that you do some research to find one. Look for lenders that are FHA-approved and have experience with 203k loans. You can start by checking the HUD website for a list of approved lenders or by asking for recommendations from real estate agents or other homeowners who have used 203k loans. Our team can also help you find a lender to work with. We work with many trusted and experienced lenders that offer 203k loans to qualifying home buyers, and we are more than happy to help connect you with one in your area.
A 203k loan consultant is a professional approved by the FHA to assist borrowers through the 203k loan process. The consultant is essential for managing the larger scope of work and ensuring compliance with FHA requirements. You are required to use a 203k consultant for any standard 203k loans (loans that cover renovation projects over $35,000 in cost).