What is a Renovation Loan?
A renovation loan (also called a 203k), is an all-in-one mortgage loan and remodeling loan financed under one institution. There are many different types of renovation loan programs to fit the buyers needs.
How many times have you viewed a property and wished you could replace the carpet or update the kitchen? Or maybe you wish to purchase a HUD owned home or a foreclosed property which will require repairs before you can occupy the property. With the 203k loan you may and finance the costs and custom design your dream home
Renovation Loan Programs
FHA 203K FULL: The Full 203k loan is used for homes that need major rehabilitation, or when repairs are structural in nature, involve landscaping, or if the total renovation costs exceed the $35,000 limit of the 203 k streamline loan. You will need to work with and get approval from a HUD consultant for all planned repairs with a Full 203k loan. The standard loan also has a minimum requirement of $5,000 of repairs.
FHA 203K STREAMLINE [203K(s)]: The Streamlined 203k loan program is intended for homes that don’t need the extensive repairs (structural, landscaping, etc.). The streamlined allows homebuyers to finance the purchase or refinancing of a home and improvements and upgrades of up to $35,000. Unlike the Full 203k there is no minimum total repair amount and homebuyers don’t need to work with a HUD consultant. The property must be occupied by the borrower during the repairs, however.