Renovation Loan

Home Renovation Loan

 

FHA 203(k) Renovation Program Highlights:

  • For primary homes only
  • 3.5% down
  • 620 min FICO needed
  • 1-4 Unit / primary only
  • $200K max repairs
  • 45-day average closing
  • Up to 6% seller contribution for purchase transactions
  • Available for purchase and refinance
  • Work to be completed within 6 months of closing
  • Renovation work begins after closing
  • Follows standard FHA credit guides
  • Finance up to 6 months Mortgage payments during renovations
  • Loan amount based on ARV
  • 30 Year Fixed Rate

 

Example:

Property Type:                      Fixer Upper

Purchase Price:                     $100,000

Total Renovation Costs       $50,000

Total Acquisition Cost:        $150,000

 

$150,000 X 96.5% =                        $144,750 (loan amount)

Down Payment (3.5%) =                  $5,250