Requirements
FHA 203k Loan Requirements Minimum Credit Score | |
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Standard FHA loan amount - 640 |
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Jumbo FHA loan amount - 640 |
203k Loan Requirements Eligible Transaction Types | |
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![]() | Purchase |
![]() | Rate/Term Refinance - Maximum loan-to-value is 97.75%. Maximum CLTV is 100% |
![]() | No Cashout Refinance. All funds must be part of the repair escrow to be paid to the contractor |
FHA 203k Loan Requirements Down Payment - Purchase Transaction | |
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![]() | 3.5% of the loan amount (purchase price + repair escrow account) |
![]() | If HUD Owned Home - as little as $100 down |
203k Loan Requirements Repair Escrow Account | |
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![]() | Minimum amount - $5,000 |
![]() | If over $35,000 must use a Full 203k loan |
FHA 203k Loan Requirements Maximum Loan Amount | |
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![]() | County specific. Reference the HUD website for FHA Mortgage Limits |
203k Loan Requirements Occupancy Type | |
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![]() | Owner occupied only |
FHA 203k Loan Requirements Eligible Properties | |
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![]() | Owner-occupied properties at least one year old |
![]() | Attached & detached single family residences |
![]() | 2-4 unit properties |
![]() | PUD's (i.e. Townhomes) |
![]() | Condo-units in FHA Approved Project (maximum mortgage cannot exceed 100% of after-improved value) |
![]() | Modular homes |
![]() | HUD Owned Home (may qualify for a down payment as little as $100) |
203k Loan Requirements Ineligible Properties | |
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![]() | Properties less than one year old |
![]() | Co-ops |
![]() | Mixed-use |
![]() | Condotels |
![]() | Manufactured homes |
![]() | Log cabin homes |
FHA 203k Loan Requirements Maximum Loan-To-Value (LTV) | |
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![]() | Purchase - Maximum loan-to-value is 96.50% |
![]() | Rate/Term Refinance - Maximum loan-to-value is 97.75%. Maximum CLTV is 100% |
203k Loan Requirements Maximum Mortgage Amount | |
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![]() | Reference Form HUD-92700 203k Maximum Mortgage Worksheet |
![]() | 110% of the after completed or improved value |
![]() | 2-4 unit properties - call for details |
FHA203k Loan Requirements Borrower Eligibility | |
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![]() | U.S. citizens |
![]() | Permanent resident aliens |
Non-permanent resident aliens:
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![]() | First time home buyers allowed |
![]() | Maximum 4 borrowers allowed |
Non-occupant co-borrowers allowed:
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203k Loan Requirements Seller Contribution | |
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![]() | 6% of sales price towards closing costs, pre-paid's, discount points, buy-down fees, and up-front MIP |
FHA 203k Loan Requirements Mortgage Insurance | |
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Upfront MIP - 1.00% of the loan amount |
![]() | Upfront MIP can be paid in cash or financed |
Annual MIP is paid monthly:
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Example - $100,000 purchase price, 30 year fixed rate mortgage, 3.5% down payment
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Qualifying Ratios | |
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![]() | 31/43% debt-to-income (DTI) or as determined by Automated Underwriting Engine (DU/LP) |
Receive loan approval from an approved FHA 203k mortgage lender | |
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![]() | To determine your eligibility for a mortgage loan call (866) 747-2882 from 8:00 a.m. to 6:00 p.m. Monday – Friday or complete a loan application using our secure encrypted online application. |