Construction / Rehabilitation Loans (203k)

The FHA 203k loan program is the Department's primary program for the rehabilitation and repair of single family properties. Basically a home improvement loan. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that FHA 203k loan is an important program and they intend to continue to strongly support the program and the lenders that participate in it.

FHA 203K Loan - How the Program Can Be Used:

This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways:

To purchase a dwelling and the land on which the dwelling is located and rehabilitate it.
To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it.
To refinance existing indebtedness and rehabilitate a dwelling;
To purchase a dwelling and the land on which the dwelling is located and rehabilitate it, and to refinance existing indebtedness and rehabilitate such a dwelling, the mortgage must be a first lien on the property and the loan proceeds (other than rehabilitation funds) must be available before the rehabilitation begins.
To purchase a dwelling on another site, move it onto a new foundation and rehabilitate it, the mortgage must be a first lien on the property; however, loan proceeds for the moving of the house cannot be made available until the unit is attached to the new foundation.

Below are a few of our most popular rehabilitation loan programs:

FHA 203(k) Streamlines

Up to $35,000 in non-structural repairs (no minimum repair required)
Borrower can be their own general contractor (limited to qualifications)
No reserves required at closing (for 1-2 unit properties)
Eligible repairs and upgrades include, but are not limited to: windows, doors, HVAC system, roof, plumbing, electric, paint, appliances, kitchen counters, cabinets, flooring and more.
No plan review or consultant required

FHA 203(k)

Minimum $5,000 in repairs
Borrower can be their own general contractor (limited to qualifications)
No reserves required at closing (for 1-2 unit properties)
Up to 6 months Principle and Interest payments can be financed if the home is not habitable during construction.

Construction-to-Permanent Financing

Fixed Rate Loans
Adjustable Rate Mortgage Loans
Construction terms available in 6, 9, 12 or 18 month terms
Simple builder approval process
Financing available for contingency and interest reserve funds
Customized draw schedules