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
