FHA 203k Loan
The FHA 203k is a renovation loan program that provides funds for both the purchase and a refi renovation of a home. There are two types of an FHA 203k loan. The first is normal 203k, which is given for properties that need structural repairs such as a new roof or a room addition. The second is the streamlined203k, which is given for non-structural repairs such as painting and new appliances. The minimum Loan Amount is $5000. There has to be at least a permit taken out on the property prior to financing for the home to qualify for a FHA 203k loan.
Owner Occupied Homes Only
A FHA 203k Loan can only be obtained on an owner occupied home, but does allow one to build up to 4 units on that property if it is zoned for it.
Is there a minimum fico score for a FHA 203k Loan”
Does the work/repairs have to be perfomred prior to close of escrow?
No it does not. All the work can be preformed as long as it does not take longer than 6 months to complete.
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