FHA 203k: cash for home improvement Despite today’s home buyers having an abundance of low- and no-downpayment mortgage options, meeting minimum downpayment requirements can be a challenge — especially because home values are climbing nationwide.
Available via the Federal Housing Administration, the 203K loan lets a buyer make the minimum 3.5% downpayment while also allowing the buyer to finance home repairs directly with the mortgage.
Click to see your FHA loan eligibility (Sep 8th, 2018) The FHA home construction loan The FHA 203K loan is today’s “home construction loan”.
It allows a home buyer to finance home repairs into a mortgage, directly.
The program is not just limited to home buyers, however.
Exiting homeowners can use the 203K to finance home repairs and home improvement projects, too.
The difference between Limited and Full 203k loans Between the two FHA 203k loan types, there are additional difference beyond the Limited version requiring less paperwork.
By contrast, the full 203K loan requires an accompanying project plan and there’s no set limit to the amount of cash you can borrow for repairs.
Furthermore, with the Limited 203K, repairs and improvements are limited to non-structural elements.
Get today’s live mortgage rates now.