{"id":1673,"date":"2018-05-20T06:10:23","date_gmt":"2018-05-20T06:10:23","guid":{"rendered":"https:\/\/dreamhomefinancing.com\/\/?page_id=1673"},"modified":"2023-02-11T16:03:17","modified_gmt":"2023-02-11T21:03:17","slug":"FHA203kRehabLoans","status":"publish","type":"page","link":"https:\/\/dreamhomefinancing.com\/FHA203kRehabLoans.aspx","title":{"rendered":"FHA 203k Rehab Loan &#8211; Top Lenders"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p><span style=\"color: #000000;\">Are you looking to buy a fixer-upper? Do you have enough money to buy the home but no additional funds to pay for the rehabilitation costs? Wouldn&#8217;t it be great if you could just roll all of those costs into your mortgage? This is exactly why the FHA 203k loan program was developed.<\/span><\/p>\n<p><span style=\"color: #000000;\">If you already know about the program and want to speak with someone now about your personal scenario, then\u00a0<span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/dreamhomefinancing.com\/\/LeadForm\/\"><strong>contact us here<\/strong><\/a><\/span>\u00a0and a qualified FHA 203k Rehab Loan officer will walk\u00a0 you through the process and will answer all of your questions.<\/span><\/p>\n<p><span style=\"color: #000000; font-size: 14pt;\"><strong>What is an FHA 203k Rehab Loan?<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\">The FHA 203k Rehabilitation loan is one that includes the purchase of the home as well as the rehabilitation or renovation costs. This program was developed for those who would like to purchase an older home that needs lots of work. Traditional mortgages do not allow funding for these kinds of repairs. With those mortgages, you are only able to borrow a percentage of the purchase price and no funds available for rehabilitation.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 12pt; color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/dreamhomefinancing.com\/\/LeadForm\/\"><strong><span style=\"color: #0000ff;\">Click to Connect with an FHA 203K Rehab Lender<\/span><\/strong><\/a><\/span><\/p>\n<p><span style=\"color: #000000; font-size: 14pt;\"><strong>Pros and Cons of an FHA\u00a0203k Rehab Loan<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>PROS<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">You can get a fixed or adjustable rate mortgage<\/span><\/li>\n<li><span style=\"color: #000000;\">You get the cash needed to make significant repairs<\/span><\/li>\n<li><span style=\"color: #000000;\">In addition to the rehab costs, you can borrow the money to make 6 months of mortgage payments while you are making the repairs.<\/span><\/li>\n<li><span style=\"color: #000000;\">You can borrow up to $35,000 to make the repairs.<\/span><\/li>\n<li><span style=\"color: #000000;\">You may be able to also get money for cosmetic repairs.<\/span><\/li>\n<li><span style=\"color: #000000;\">A credit score of only 640 is needed to qualify.<\/span><\/li>\n<li><span style=\"color: #000000;\">The down payment requirement is only 3.5%<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><strong>CONS<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">The interest rates are typically a bit higher<\/span><\/li>\n<li><span style=\"color: #000000;\">Not all lenders offer the 203k rehab loans. We are connected to those who do.<\/span><\/li>\n<li><span style=\"color: #000000;\">A construction consultant is needed.<\/span><\/li>\n<li><span style=\"color: #000000;\">It sometimes takes longer to close these loans.<\/span><\/li>\n<li><span style=\"color: #000000;\">You must have mortgage insurance.<\/span><\/li>\n<li><span style=\"color: #000000;\">These loans are not available for investment properties.<\/span><\/li>\n<li><span style=\"color: #000000;\">You cannot do the repairs yourself. You must hire a licenced contractor.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000; font-size: 14pt;\"><strong>What is the process?<\/strong><\/span><\/p>\n<ol>\n<li><span style=\"color: #000000;\">Contact the lender to apply for the loan here<\/span><\/li>\n<li><span style=\"color: #000000;\">Get approved\u00a0for the loan<\/span><\/li>\n<li><span style=\"color: #000000;\">Find an FHA approved contractor to do the work<\/span><\/li>\n<li><span style=\"color: #000000;\">Close the loan<\/span><\/li>\n<li><span style=\"color: #000000;\">The contractor completes the repairs<\/span><\/li>\n<li><span style=\"color: #000000;\">You move into your newly remodeled home<\/span><\/li>\n<\/ol>\n<p><span style=\"color: #000000; font-size: 14pt;\"><strong>Are You Eligible for an FHA 203k Rehab Loan?<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Credit scores as low as 580 although some lenders will not go below 620 or 640.<\/span><\/li>\n<li><span style=\"color: #000000;\">Down Payment of 3.5% of the total borrowed amount (purchase plus rehab dollars needed).<\/span><\/li>\n<li><span style=\"color: #000000;\">The down payment can be gifted from a family member.<\/span><\/li>\n<li><span style=\"color: #000000;\">Debt to Income ratio no higher than 43% &#8211; Meaning your mortgage, insurance and taxes cannot exceed 43% of your gross monthly income.<\/span><\/li>\n<li><span style=\"color: #000000;\">Purchase price plus rehab costs cannot exceed 110% of the proposed future value of the home or total costs.<\/span><\/li>\n<li><span style=\"color: #000000;\">You must plan to occupy the home as your primary residence.<\/span><\/li>\n<li><span style=\"color: #000000;\">You must be a US\u00a0Citizen or lawful permanent resident.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000; font-size: 14pt;\"><strong>There are two Types of FHA 203k Rehab loans<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><u><strong>203k Streamline<\/strong><\/u>\u00a0&#8211; Here, you are permitted to change a lot of the\u00a0<u>non structural repairs<\/u>\u00a0such as&#8230;<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Kitchen or bathroom remodeling<\/span><\/li>\n<li><span style=\"color: #000000;\">Appliances<\/span><\/li>\n<li><span style=\"color: #000000;\">Flooring or carpets<\/span><\/li>\n<li><span style=\"color: #000000;\">Electrical and plumbing<\/span><\/li>\n<li><span style=\"color: #000000;\">Painting<\/span><\/li>\n<li><span style=\"color: #000000;\">Waterproofing the basement<\/span><\/li>\n<li><span style=\"color: #000000;\">Decking and patios<\/span><\/li>\n<li><span style=\"color: #000000;\">Septic or well repair and replacement<\/span><\/li>\n<li><span style=\"color: #000000;\">Lead paint or asbestos removal<\/span><\/li>\n<li><span style=\"color: #000000;\">Heating, air conditioning, and energy efficient improvements<\/span><\/li>\n<li><span style=\"color: #000000;\">Etc<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><u><strong>203k Standard Loan<\/strong><\/u>\u00a0&#8211; Here you can make any improvement to the home that you want that is not a luxury amenity and the changes must be permanent. Meaning, things that you cannot take with you if you sell the home (ie a hot tub). Here, you can make the same changes as above in the 203k streamline PLUS here are some examples of other changes that you can make with the 203k standard but not the streamline.<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Converting a one family home to a multi unit home.<\/span><\/li>\n<li><span style=\"color: #000000;\">Sewer and gas lines<\/span><\/li>\n<li><span style=\"color: #000000;\">Adding wheel chair access<\/span><\/li>\n<li><span style=\"color: #000000;\">Additions or moving walls<\/span><\/li>\n<li><span style=\"color: #000000;\">etc<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">*You cannot do things like add a pool or landscaping with this money.<\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>FHA 203k Rehab loan rates<\/strong>\u00a0&#8211; You can expect the rate for one of these loans to be up to 1%\u00a0higher than a standard FHA\u00a0loan. Still, these rates will be a lot lower than if you got a traditional non-FHA\u00a0construction loan. <a href=\"https:\/\/dreamhomefinancing.com\/LeadForm.aspx\"><span style=\"color: #0000ff;\">Click Here to Find Out Your FHA 203k Mortgage Rate<\/span><\/a><\/span><\/p>\n<p><span style=\"color: #000000; font-size: 14pt;\"><strong>An FHA 203k Rehab Loan can be an amazing investment<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\">Just imagine this and it happens every day. You have your eye on a home that you can buy for $200,000. The kitchen and baths are basically destroyed and the whole place needs paint and the carpet removed. It needs about $30,000 or work to make the home look up to date. Meanwhile, similar homes in the neighborhood\u00a0 with newer kitchens and baths are selling for $300,000. Now, you are able to buy the home and transform it into something that is worth a lot more. You could essentially build that additional $70,000 in equity quickly.<\/span><\/p>\n<p><span style=\"color: #000000;\">Or, just imagine this&#8230;\u00a0 you buy a home and convert it to a 2 family. Now you just added more value. Possibly live in one and rent the other or sell a home that is worth much more now.<\/span><\/p>\n<p><span style=\"color: #000000; font-size: 14pt;\"><strong>First Time Home Buyers<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\">The FHA\u00a0203k Rehab Loan can be great for first time home buyers. They are often limited in available funds for the down payment and rehab costs. They are also typically younger with plenty of energy to take on a project.<\/span><\/p>\n<p><span style=\"text-decoration: underline; color: #000000; font-size: 14pt;\"><strong>Frequently Asked Questions:<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>Do FHA\u00a0203k Rehab loans require mortgage insurance?<\/strong>\u00a0Yes, typically .85% of the loan amount but you should speak to an\u00a0<span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/dreamhomefinancing.com\/\/LeadForm\/\">FHA loan officer<\/a>\u00a0<\/span>to find out specifically as it relates to your scenario.<\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>Can I\u00a0use the FHA 203k rehab loan money for anything I\u00a0want?<\/strong>\u00a0No, there are specific things that you can use the rehabilitation money for. Your FHA lender can help walk you through which repairs will qualify.<\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>How much of a down payment is required?<\/strong>\u00a0You will need 3.5% of the total loan amount which is amazing considering you are able to borrow more than the purchase price of the home.<\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>What are the FHA 203k rehab loan credit score requirements?<\/strong>\u00a0FHA guidelines state as low as 580 but some lenders may require a higher score than that.<\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>Can I\u00a0do the work myself? I am handy<\/strong>! No, you must hire a licensed contractor and he must be an FHA approved contractor<\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>Can I get an FHA 203k rehab loan to finance an investment property?<\/strong>\u00a0No, only homes that you plan to use as your primary residence will qualify.[\/vc_column_text][vc_empty_space height=&#8221;20px&#8221;][vc_column_text]<strong>Resources<\/strong><\/span><strong><br \/>\n<\/strong><\/p>\n<p><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/fhalenders.com\/fha-203k-loan\/\" target=\"_blank\" rel=\"noopener\">More Information on FHA 203k Rehab Lenders<\/a><\/span> &#8211; FHA Lenders<\/p>\n<p><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.hud.gov\/program_offices\/housing\/sfh\/203k\/203k--df\" target=\"_blank\" rel=\"noopener noreferrer\">Info on 203k Mortgage Insurance<\/a>\u00a0<\/span>&#8211; HUD<\/p>\n<div class=\"wpb_column vc_column_container vc_col-sm-8\">\n<div class=\"vc_column-inner \">\n<div class=\"wpb_wrapper\">\n<div class=\"vc_custom_heading text_align_center\">\n<div class=\"vc_row wpb_row vc_row-fluid\">\n<div class=\"wpb_column vc_column_container vc_col-sm-12\">\n<div class=\"vc_column-inner \">\n<div class=\"wpb_wrapper\">\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<div><strong>We are able to help you to find an FHA 203k rehab lender in the following states:<\/strong>\u00a0Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"wpb_column vc_column_container vc_col-sm-4\">\n<div class=\"vc_column-inner \">\n<div class=\"wpb_wrapper\">\n<div id=\"wpcf7-f2282-o1\" class=\"wpcf7\" dir=\"ltr\" lang=\"en-US\" role=\"form\">\n<div class=\"screen-reader-response\"><\/div>\n<form class=\"wpcf7-form theme_1 errorMsgshow\" action=\"https:\/\/dreamhomefinancing.com\/LoworNoDocumentLoans.aspx#wpcf7-f2282-o1\" method=\"post\" novalidate=\"novalidate\">\n<div class=\"Sidebar_frm_lead new_st_side_lead\">\n<h4>Contact Us For a Free Rate Quote<\/h4>\n<div class=\"sidebar_inner_frm\">\n<div class=\"col1_1\">\n<p>Loan Type<br \/>\n<span class=\"wpcf7-form-control-wrap loan_type\"><select id=\"loantype\" class=\"wpcf7-form-control wpcf7-select wpcf7-validates-as-required loan_type required\" name=\"loan_type\" aria-required=\"true\" aria-invalid=\"false\"><option value=\"Purchase Quote\">Purchase Quote<\/option><option value=\"Refinance Quote\">Refinance Quote<\/option><option value=\"Home Equity Quote\">Home Equity Quote<\/option><\/select><\/span><\/p>\n<\/div>\n<div class=\"col1_1 col1_2\">\n<p><span class=\"wpcf7-form-control-wrap first-name\"><input id=\"fname\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required f_name required\" name=\"first-name\" size=\"40\" type=\"text\" value=\"\" placeholder=\"First Name\" aria-required=\"true\" aria-invalid=\"false\" \/><\/span><span class=\"wpcf7-form-control-wrap last-name\"><input id=\"lastname\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required l_name required\" name=\"last-name\" size=\"40\" type=\"text\" value=\"\" placeholder=\"Last Name\" aria-required=\"true\" aria-invalid=\"false\" \/><\/span><\/p>\n<\/div>\n<div class=\"col1_1\">\n<p><span class=\"wpcf7-form-control-wrap your-email\"><input id=\"yemail\" class=\"wpcf7-form-control wpcf7-text wpcf7-email wpcf7-validates-as-required wpcf7-validates-as-email required email\" name=\"your-email\" size=\"40\" type=\"email\" value=\"\" placeholder=\"Email Address\" aria-required=\"true\" aria-invalid=\"false\" \/><\/span><\/p>\n<\/div>\n<div class=\"col1_1\">\n<p><span class=\"wpcf7-form-control-wrap tel-nuber\"><input id=\"ytel\" class=\"wpcf7-form-control wpcf7-text wpcf7-tel wpcf7-validates-as-required wpcf7-validates-as-tel required\" name=\"tel-nuber\" size=\"40\" type=\"tel\" value=\"\" placeholder=\"Phone Number\" aria-required=\"true\" aria-invalid=\"false\" \/><\/span><\/p>\n<\/div>\n<div class=\"col1_1\">\n<p><span class=\"wpcf7-form-control-wrap city-name\"><input id=\"cname\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required c_name required\" name=\"city-name\" size=\"40\" type=\"text\" value=\"\" placeholder=\"City\" aria-required=\"true\" aria-invalid=\"false\" \/><\/span><\/p>\n<\/div>\n<div class=\"col1_1\">\n<p><span class=\"wpcf7-form-control-wrap state\"><select id=\"state\" class=\"wpcf7-form-control wpcf7-select wpcf7-validates-as-required form-group required\" name=\"state\" aria-required=\"true\" aria-invalid=\"false\"><option value=\"\">Select Your State<\/option><option value=\"Alabama\">Alabama<\/option><option value=\"Alaska\">Alaska<\/option><option value=\"Arizona\">Arizona<\/option><option value=\"ArKansas\">ArKansas<\/option><option value=\"California\">California<\/option><option value=\"Colorado\">Colorado<\/option><option value=\"Connecticut\">Connecticut<\/option><option value=\"Delaware\">Delaware<\/option><option value=\"District of Columbia\">District of Columbia<\/option><option value=\"Florida\">Florida<\/option><option value=\"Georgia\">Georgia<\/option><option value=\"Hawaii\">Hawaii<\/option><option value=\"Idaho\">Idaho<\/option><option value=\"Illinois\">Illinois<\/option><option value=\"Indiana\">Indiana<\/option><option value=\"Iowa\">Iowa<\/option><option value=\"Kansas\">Kansas<\/option><option value=\"Kentucky\">Kentucky<\/option><option value=\"Louisiana\">Louisiana<\/option><option value=\"Maine\">Maine<\/option><option value=\"Maryland\">Maryland<\/option><option value=\"Massachusetts\">Massachusetts<\/option><option value=\"Michigan\">Michigan<\/option><option value=\"Minnesota\">Minnesota<\/option><option value=\"Mississippi\">Mississippi<\/option><option value=\"Missouri\">Missouri<\/option><option value=\"Montana\">Montana<\/option><option value=\"Nebraska\">Nebraska<\/option><option value=\"Nevada\">Nevada<\/option><option value=\"New Hampshire\">New Hampshire<\/option><option value=\"New Jersey\">New Jersey<\/option><option value=\"New Mexico\">New Mexico<\/option><option value=\"New York\">New York<\/option><option value=\"ni\">ni<\/option><option value=\"North Carolina\">North Carolina<\/option><option value=\"North Dakota\">North Dakota<\/option><option value=\"Ohio\">Ohio<\/option><option value=\"Oklahoma\">Oklahoma<\/option><option 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\/><\/div>\n<\/div>\n<\/div>\n<\/form>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>Are you looking to buy a fixer-upper? Do you have enough money to buy the home but no additional funds to pay for the rehabilitation costs? Wouldn&#8217;t it be great if you could just roll all of those costs into your mortgage? This is exactly why the FHA 203k loan program was developed. If you&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"default","_kad_post_title":"default","_kad_post_layout":"default","_kad_post_sidebar_id":"","_kad_post_content_style":"default","_kad_post_vertical_padding":"default","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages\/1673"}],"collection":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/comments?post=1673"}],"version-history":[{"count":12,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages\/1673\/revisions"}],"predecessor-version":[{"id":6328,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages\/1673\/revisions\/6328"}],"wp:attachment":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/media?parent=1673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/categories?post=1673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/tags?post=1673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}