FHA 203K Loan

FHA 203K Loan

It’s Saturday, and you are checking up on the latest “Honey Do…” list and things seem to be amiss. You see things like, “Renovate kitchen, expand garage into sunroom, remove and replace old carpeting, rewire house...” All these things seem way out of your league both financially and skillfully. How are you ever going to be able to complete all these renovations and repairs?

Fear not! The FHA 203K loan may be the solution to your worries. The FHA 203K Rehab and Renovation Loan can be used in one of 3 ways:

1. To purchase an existing home (and the land attached to that home) to renovate it.
2. To payoff existing debt on a current residence and renovate it
3. To purchase an existing home with the intent to move it to a new piece of land in a more preferred location.

To put it simply, the only things that FHA and HUD generally frown upon are non-permanent additions to the property and luxury items that are being installed. However, there are several things you might not think qualify for the 203K loan but in fact do:

1. New freestanding appliances
2. Upgrading HVAC
3. Adding energy efficient improvements
4. Wells and septic repair and upgrades
5. New siding
6. Interior painting
7. Exterior painting
8. Finishing the basement
9. Bedroom additions
10. New deck / patios
11. New hardwood flooring
12. New doors and windows
13. Upgrading plumbing and electrical
14. Opening up the floorplan
15. New granite countertops
16. Vaulting the ceilings
17. Making a house handicap accessible
18. Getting a condo or house ready for a new college student
19. Solar panels
20. Low flow toilets and shower heads

Any of these things sound interesting to you? Give your local mortgage professionals a call at First Option Mortgage and find out what brand new things you can do to your home!