What is a a FHA 203K “rehabilitation loan” and what can we do with it?
FHA 203K Loan
An FHA 203k loan permits home buyers to finance repair/improvement money into their mortgage to repair, improve or upgrade their home. With this loan option, home buyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a 203k Consultant, FHA approved inspector, FHA appraiser or home buyer preferences. There are two types of FHA 203k Loans: Standard/Full (minimum rehab $5,000 up to FHA maximum loan amount) & the Streamline (minimum rehab $0 – $35,000…cannot exceed FHA maximum loan amount). The FHA 203k Standard/Full loan is more like a construction project, and the FHA Streamline 203k Loan is for more minor improvements.