| The Federal Housing Administration or FHA a | | | | home may be appraised after the repairs |
| division of HUD offers the 203k loan program. | | | | enhancing value. |
| This loans primary focus is the rehabilitation and | | | | The borrow can finance all repairs, improvements |
| repair of single-family properties or a home | | | | and additions with the 203k rehabilitation loan and |
| improvement loan. This full rehab, major | | | | it acts as a regular loan, not a construction loan |
| renovation loan offers affordable ways to | | | | where you must find a conventional mortgage |
| improve an existing residential home. | | | | when the construction is complete. |
| Quick Facts on the this Loan: | | | | Realtors also find this rehabilitation loan effective |
| This full rehab, major renovation loan can be used | | | | as property listings become more attractive if the |
| for rehabilitation and/or improvement of any | | | | buyers are aware of the rehab loan and that it is |
| one-to-four unit dwelling. It is designed to be | | | | an available option for them. |
| utilized in one of three ways:o To purchase a | | | | Dwellings not eligible are properties built less than a |
| dwelling and the land it sits on and revitalize or | | | | year from the time of the request for the 203k |
| rehabilitate it. For condos, only the interior repairs | | | | loan. Income producing properties, non-residential, |
| may be financed, no outside construction to the | | | | and cooperative homes are also not eligible with |
| dwelling can be financed.o To purchase a dwelling | | | | the exception of interior repairs or rehabilitation to |
| on another site and move it onto a new | | | | a cooperative home. |
| foundation on the mortgage property and | | | | This loan is perfect for bathroom and kitchen |
| rehabilitate it.o For refinancing of existing dwelling | | | | remodels, removing lead paints or asbestos to |
| and rehabilitating it. | | | | meet building standards, eliminate the old or |
| To purchase a dwelling and land and to refinance | | | | obsolescent look of the dwelling, plumbing and |
| indebtedness, the mortgage must be a first lien | | | | heating repairs, and connections to public utilities |
| on the property and the loan proceeds must be | | | | like water and sewer. Additional eligible |
| available before the rehabilitation begins. If moving | | | | improvements are tile and carpeting, energy |
| a dwelling to another site and foundation and | | | | improvements, landscape, handicap accessible |
| rehabilitating it, the mortgage must also be a first | | | | improvements, and roofing, gutters, downspouts, |
| lien on the property but the loan proceeds for | | | | and new appliances. |
| moving of the dwelling can't be made available | | | | Ineligible improvements for this particular loan |
| until the dwelling is attached to its new foundation. | | | | include barbeque pits, dumbwaiters, and exterior |
| How it all Works | | | | hot tubs as well as saunas, outdoor fireplaces, and |
| With home foreclosures on the rise and lenders | | | | swimming pools. Satellite dishes and tennis courts |
| unwilling to finance repairs, the 203k loan allows | | | | are also considered to be ineligible repairs. |
| repairs and improvements to be financed and the | | | | |