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FHA 203K Rehab Loan

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If you want to purchase a home that needs works or if you want to do an addition to your home, the FHA 203K loan might be the right one for you.

What is an FHA 203K loan?

FHA 203K loan for considered “rehab” loans. They can be done as a purchase or refinance and along with doing a normal home loan they provide extra money in an escrow account to pay for repairs or to add an addition to your home. The appraisal is based off the future value after the work is completed. The work must be done by a licensed contract.

Benefits of an FHA 203K loan

These are some of the advantages of FHA 203K mortgages:

FHA loan have flexible qualification requirements. They allow higher debt-to-income (DTI) ratios than conventional loans and your credit does not need to be perfect

This loan will work for properties that are in less than ideal condition. Its often difficult to get financing for properties that are fixers and need major work. With an FHA 203K loan this does not matter as long as the work will be completed with the 203K loan financing.

The appraisal will be based on future value after the repairs or addition is completed. Also, the appraised value can be up to 10% lower than the purchase price the cost of repairs or addition. This added flexibility allows the money for remodeling without the worries of an appraisal not coming in high enough.

Down payments for FHA 203K loans are as low as 3.5% of the purchase price plus 3.5% of the cost of repairs.

An FHA 203K loan can be used for a home purchase or refinance and give you the additional funds you need to remodel your home.

What Our Clients Are Saying

Facundo Lavino
Facundo Lavino
19:16 26 Oct 21
Nichole and Brian are AMAZING. They were resourceful, patient and made it happen for us. We got a new house thanks to them. Thank you very much
They did an amazing job of getting the rates we wanted and quickly with ease. I highly recommend them if you are buying in CA!
Shaktivan Chamba
Shaktivan Chamba
22:18 15 Oct 21
Brian and Nicole are a pleasure to work with. appreciate the clarity, availability to answer the many questions, capabilities to succuessfully fund, kindness, trustworthiness. thanks
Nauz Karami
Nauz Karami
14:42 13 Oct 21
It was such a pleasure to work with Brian and Nichole on this loan. As a real estate professional I work with so many lenders/ brokers so when it came time to choosing one for my personal deal I definitely had a lot of options. with that said I chose Brian and his team as they were the most responsive, gave me the best rate and we’re so on top of the file. The whole process was super easy and smooth and we didn’t have a single delay! Will definitely be sending all my clients to Grand Lending Team.
00:35 13 Oct 21
We had a great experience working with Nicole & Brian. They were efficient, professional, thorough, and made us feel comfortable throughout the entire process.

Apply for an FHA 203K Loan Now with The Best Home Loans

Navigating an FHA 203K loan can be complicated but at The Best Home Loans we are 203K experts having funded many of them. We know the ins and outs of what is required and we can help you close your rehab loan smoothly. To get started with your application, please call (800) 293-2133. We can help you obtain an FHA 203K loan in any of the 50 states.

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