FHA 203K Renovation Loan
Learn why renovation lending is important in today’s real estate market.
What is a FHA 203K renovation loan?
Understand the differences between a Streamline FHA 203K loan and Full FHA 203K loan.
Learn the eligible renovations and allowable repairs such as roof, gutters, down spouts, energy efficient items, hvac systems, hot water heaters, foundations, interior paint, exterior paint, waterproof basements, kitchen remodel, bathroom remodel and more. Renovation lending for homebuyers and homeowners. Renovate your next home purchase or renovate your current home.
Quick Facts about FHA 203K Renovation Loans:
- 3.5% Down Payment
- Washington Metro Area Maximum Loan Amount $625,500
- Repairs & Renovation Costs - up to $35,000 for Streamline 203K Loan
- Repairs & Renovation Costs – $5,000 to No Limit for Full 203K Loan
- First Time Home Buyers & Repeat Buyers Eligible
- Higher interest rate than standard FHA 203b loan
- Primary residences
- Use the renovation loan for purchase or refinance (no cash out)
- Structural Improvements Allowed
- Luxury Improvements NOT Allowed
Required FHA 203k Improvements
- Additions to existing structure
- Rehabilitation of existing structure (weather-stripping, caulking, insulation, etc)
- Replacement systems (heating, ventilating, and air conditioning systems)
- Smoke detectors
Eligible FHA 203k Improvements
- Elimination of health and safety hazards
- Structural alterations and reconstruction
- Changes for improved functions and modernization
- Changes for aesthetic appeal
- Reconditioning or replacement of plumbing, heating, air conditioning & electrical systems
- Installation of well and/or septic system
- Roofing, gutters and downspouts
- Flooring, tiling and carpeting
- Energy conservation improvements
- Major landscape work and site improvement
- Improvements for accessibility to the handicapped