| The Federal Housing Administration created the FHA 203k Loan to allow homebuyers and homeowners the ability to finance renovation and rehab projects. Through the 203k Loan program new homeownership opportunities are created and neighborhoods are revitalized. |
The FHA 203k Loan is a flexible source of renovation financing for new and current homeowners that offers the following benefits:
 | With a 203k Loan new homeowners can purchase a house and establish a 203k renovation budget with one loan |
| FHA 203k down payments are as low as 3.5% of the combined purchase price and 203k renovation budget |
| Down payments on a 203k Loan can be gifted |
| The 203k Loan allows the seller to contribute up to 6% of the purchase price toward closing costs |
| Most property types are allowed with a 203k Loan |
| 203k Loan allow existing homeowners can refinance a current mortgage and establish a 203k renovation budget up to 97.75% of the after completed property value |
203k Loan Financing Requirements:
| Combined purchase price and 203k renovation budget cannot exceed 110% of the "after completed" appraised property value |
| 203k Loan amount can't exceed FHA county loan limits |
| 203k Loan renovation must be completed within 6 months of closing |
| A third party contractor must complete all 203k repairs |
| Appraisal deficiencies must be repaired through the 203k Loan renovation process |
| 203k Loan underwriter must approve the 203k contractor as being licensed (if applicable), bonded, and insured |
