FHA 203K Loan Program

Dated: June 11 2020

Views: 56

FHA 203K



You’ve found a great property. Perfect for your needs, and in just the right location. It could use some fixing up, but that’s OK because it brings down the price. Besides, you like the idea of customizing a home to make it truly yours.

The problem is that the bank won’t lend the money until the repairs are complete. And you can’t buy the house until you do the repairs.

Fortunately, there’s a loan program in place, backed by the Federal Housing Administration, meant to alleviate that very problem.

The FHA 203(k) is perfect for enterprising homebuyers who are willing to pay a lower price for houses that need some sprucing up or repair work, and willing to arrange for that work themselves. Depending on the type of 203(k) loans, they can be used to fund anything from minor touch-ups to major renovations.

The program has been around for decades, but under-used for much of that time. It’s becoming increasingly popular among homeowners who see the value of putting instant equity in their homes, and like the idea of customizing a property to suit their needs.

You can purchase or refinance a property, and include in the loan the cost of making repairs and improvements with as little as 3.5 percent down.

With this program, you can rehabilitate or improve an existing one-to-four-unit residential property. One of those units must serve as your primary residence, though you can rent out the others in multi-unit homes.

If you’re ready to buy your house this year, and are thinking a 203 (K) might be right for you reach out to a Patrick Team Properties expert today. 


Blog author image

Bevia Patrick

Since its inception in 1995, Patrick Team Properties has exemplified a profound commitment to its clients by providing the highest standard of service, integrity and work ethic in the field. Patri....

Latest Blog Posts

What Is The Strongest Tailwind To Todays Recovering Economy

What Is the Strongest Tailwind to Today’s Recovering Economy?Last year started off with a bang. Unemployment was under 4%, forecasters were giddy with their projections for the economy, and

Read More

Is It A Good Time To Sell My House

Is It a Good Time to Sell My House?Last year, many homeowners thought twice about selling their houses due to the onset of the health crisis. This year, however, homeowners are beginning to regain

Read More

How Smart Is It To Buy A Home Today

How Smart Is It to Buy a Home Today?Whether you’re buying your first home or selling your current house, if your needs are changing and you think you need to move, the decision can be complicated.

Read More

Did You Outgrow Your Home In 2020

Did You Outgrow Your Home in 2020?It may seem hard to imagine that the home you’re in today – whether it’s your starter home or just one you’ve fallen in love with along the way – might

Read More