FHA 203K Loans for Home Improvement, Rehabilitation and Financing House Repairs

FHA 203k loan options provide home repair, rehab and home improvement financing information for qualified applicants. FHA 203K loans were created to help revitalize properties for families to move into and live. These loan programs were specifically designed to help revitalize certain regions to help increase the affordability and general well beings for these under-appreciated areas. The 203K loan program has done wonders in the revitalization of neighborhoods and communities in desperate areas throughout the United States.

Finance Home Remodeling with Home Improvement Loans and Construction Under the 203k Loans Guaranteed by the FHA

The FHA 203k is also one of the only government funded energy efficient home loan programs that enables you to go green by financing solar energy installation and funding the cost of updating appliances to conserve water and energy in an effort to lower your gas and electric bill while making your home more environmentally friendly.

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What is the maximum Loan to Value Limit with FHA 203K loans?

These home improvement loans allow you to borrow above and beyond the value of the home. The LTV is considered after the home repairs or rehabilitation of the home is completed.

The FHA does a current appraisal of the home to indicate the value prior to the repairs. They will consider all of the rehabilitation you plan to do and do a 2nd appraisal for what they the property with be valued at after the repairs are completed. If you install a solar energy solution, the FHA will insure up to 20% more of your mortgage value which allows you to get access to more cash.

More families are restoring their homes with the FHA 203k incentives that help finance improvements.

  • Home Improvements Financing to 115%
  • Credit scores are not an issue.
  • Assumable Mortgages Allowed
  • Finance up to 6 months of mortgage payments
  • Purchase or Refinance and Improve all in one loan
  • Finance a Solar Energy System with a 203K Loan

More Common Questions for Rules on FHA 203K Loans

Is there a minimum amount I need to borrow to make home improvements under the 203(k) program? Yes. The FHA requires you to borrow at least $5,000 for repairs to the home in order to use the 203(k) program.

Are there certain repairs that are required by the FHA? Yes. The FHA requires you to meet current building standards for energy efficiency. If you are rehabilitating a home than these standards include:

  • There must be ventilation in all crawl spaces & attics.
  • Weather stripping is required on all windows and doors.
  • All cracks and openings from the interior to the exterior of the home must be sealed.
  • All outward facing walls and ceilings of the home must be insulated. The air conditioning, heating, and ventilation pipes & ducts must also be insulated.
  • All bedrooms must have a smoke detector installed.

What types of homes can I purchase through the FHA 203(k) program? You can use the 203K product to purchase single family homes, up to 4 unit residences as long as you occupy one of them, and condominiums.

What improvements are allowed by the FHA?
The FHA requires you to make your home more energy efficient, but optional repairs that you can finance into your loan include:

  • Repair to the structure of the home. This includes framing, chimneys, foundations, siding, new additions to the home, roofing and basement finishing.
  • Repair or the new building of bathrooms.
  • Finance Solar Energy Installation
  • New windows or new skylights.
  • Financing Energy Efficient Home Appliances
  • Remodeling kitchens and installing new appliances.
  • Any repairs that are needed for safety like mold removal or lead paint.
  • Repair to internal systems of the home like electrical, plumbing, heating, air conditioning, and ventilation.
  • All types of flooring repairs or new flooring.
  • Repair or replacement of wells and septic systems
  • Remodeling including new light fixtures, bathroom fixtures painting, and more.
  • Outdoor improvements allowed: patios, decks, porches, landscaping, driveways and fencing

*Rehabilitation projects that are deemed necessary with accessibility reasons for disabled people are allowed.


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203K FHA Home Improvement Loans | FHA Streamline Refinance | 100% Mortgage | Bad Credit Refinance | FHA Mortgage Loans for Fair Credit Refinancing | FHA Refinance | 85% Cash Out Refinance Loans | FHA Mortgage Loan State Guidelines | Energy Efficient Home Loans | Streamline Refinance | FHA Loan Requirements | Bad Credit FHA Mortgage | FHA Rules For Gift Funds And Down Payments | How FHA Mortgages May Burden US Tax Payers | How FHA Financing Could Slow Housing Recovery | Application for FHA Loan
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BD Nationwide Mortgage, 515 Encinitas Blvd. Ste 100, Encinitas, California 92024
Please be aware that this is not an advertisement for credit as defined by paragraph 226.24 of regulation Z. Nothing on this site contains an offer to make a specific home loan for any purpose with any specific terms. This is a web-site and no loans can be guaranteed as loans and rates are subject to change. Nationwide is affiliated with a federally chartered bank located in Maryland licensed to offer home loans in all 50 states. Copyright 2001-2012, Nationwide Mortgage Loans, BDnationwidemortgage.com. All rights reserved. Do not duplicate in any form. Please note that HUD does not approve all applicants for the FHA 203K loan. BDNationwideMortgage.com does not have any affiliation with the FHA or any other government entity.