Welcome to www.203khomeloan.com website.
This website was designed to answer all your questions about the FHA 203(k) loan. This loan is especially beneficial in today’s market, which is filled with great deals on repossessed homes in need of repair. You will find answers to most questions by selecting from the different tabs located on the upper left side of this home page.
Also located on the upper left side of this home page is a tab that would allow you to directly contact an experienced FHA 203(k) loan specialist that is licensed in all 50 states. The people that administer this site have closed hundreds of FHA 203(k)’s loans, so you can be assured that you are dealing with an experienced and knowledgeable loan officer.
Two different types of FHA 203(k) loans
FHA now has two different types of FHA 203(k) loan options:
· The first, more simplified version of the 203(k) is called the “Limited 203(k)”, here are the basics on this type of loan:
o No Structural Repairs Allowed (e.g.- moving a load bearing wall, repair a basement wall, etc..)
o The maximum dollar amount of repairs is limited to $35,000
o The contractor(s) receive half the money at loan closing
o The contractor is paid the balance of the money owed upon completing the balance of the repairs
o Six months to complete the work
· The second type of 203(k) loan is called a “Standard 203(k)”, here are the basics on this type of loan:
o Structural Repairs ARE Allowed
o There is no maximum dollar amount for repairs (sales price, plus repairs cannot exceed 110% of the estimated “as-proposed” appraised value)
o There is no “upfront” money released to the contractor
o There is a maximum of 5 draws for the rehabilitation, the fifth draw must be the final and repairs are required to be completed in 6 months
o A HUD-Trained FHA 203(k) inspector will be involved to determine the necessary repairs and in draw process.
Feel free to look around and gather some information on both loans. We would love to answer all your questions about rehabilitation financing, you can contact us by selecting the appropriate tab on the left hand side of this page and someone will get back with you at our earliest opportunity. If you would like to call directly between the hours of 8:00 am and 7:00 pm EST, you are welcome to contact us using the “contact us” tab on the left.