The FHA 203k Rehab loan is a great opportunity for people looking to gain equity in a slower market.  Properties are not gaining value at the massive rates of few years ago (thank god, because there would no affordable housing left at all), but rehabbing your home allows you add more square footage, update features, and can make your house worth more.

The 203k Rehab program works for both purchase and refinancing.  Also, you don’t have to be completely over-hauling your property.  The loan works with doing as little as $5000 in repairs.  One single loan covers the purchase/refi and renovation costs.

Now….taking up a big renovation project is not for the faint of heart.  It can be a time-intensive project, deciding what work you want done, dealing with contractor bids, etc.  Of course, if you are working with me, I will make it as pain free as possible

Some Quick FHA 203K Facts:

• Loan based on “after improved” value 
• Program is for owner occupants, not for investors (but I have some great investor rehab programs if you need it) 
• For either purchase or refinance of a property
• Flexible qualifying guidelines, just like regular FHA loans
• Maximum Loan amount of $417,000
• Finance in up to 6 months of mortgage payments (meaning you don’t have to make payments during the construction period)
• Contract to Close in as little as 30 days (as long as you have your contractor lined up!)
• HUD approved FHA consultant works with you on construction plans, making sure your plans make sense and you know what your getting into
• You do need some cash available for closing costs (though there are ways I can help you with this!)