Property Improvements:
  • Properties that are sold “as-is” often would not qualify for a standard FHA loan. However, 203(k) loans are designed to improve, update and modernize the home.
  • You can purchase a home that does not require repairs and finance the cost of “modernization” or cosmetic repairs. (See eligible improvements).
  • The loan allows for 1-4 unit dwellings, including condominiums.
  • Where zoning allows, a 203(k) loan can be used to convert a single family dwelling to 2-4 units and vice versa. (See eligible properties.)
  • Up to six months of PITI (principal, interest, tax and insurance) payments can be financed to assist those who would otherwise be required to make double-housing payments. Consultant will determine the number of months house will be uninhabitable for financing of payments. (Consultant K only).
  • The loan can be used for complete reconstruction of a home on its original foundation.
Financing Flexibility:
  • The loan enables you to purchase foreclosure properties that require repairs. Most HUD Foreclosure properties could benefit from a 203(k) loan.
  • Up to 110% (100% on condominiums) of the after improved value of the home may be used as basis for mortgage calculations. (The appropriate LTV factor is then applied.)
  • Buyers who purchased a property with cash can use the 203(k) program to complete repairs/ modernization and replenish funds used at the time of purchase. Mortgage must close within 6 months of cash purchase.
  • Properties in “below-average” condition can be upgraded through repairs and maintenance (i.e., new roof, fix broken windows, and lead paint abatement). Increase square footage by building an addition, building a second floor or finishing a basement or attic space. (Consultant K only.)
We recognize this is a difficult time for many people. Click here or call 866-913-2951 for more information and to learn about current options available to our borrowers.