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The FHA 203K Loan

Purchase or refinance a home and finance improvements

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What Can I do with a FHA 203k Loan?

Wow! What a question! It may be easier to tell you what you can't do with a FHA 203k loan because the loan offers so much flexibility!

The FHA 203k loan has a particular feature not often found in loan products. Normally, homes for most loan programs are based upon the "as is value" and the "as is condition" of the home as the appraiser sees it.

With a FHA 203k loan, the bids for repairs become an integral part of the appraisal, and the appraiser is asked to appraise the home and consider what it's condition will be after the repairs are completed.

Each County has a maximum loan amount established by HUD. The loan amount is limited on this basis. You can check your maximum loan amount by clicking HERE.

So what CAN you do with a FHA 203k loan. Well, you could actually go so far as to tear the home down to it's foundation and rebuild it on the same foundation. So roof repairs, room additions, structural repairs, building a new garage or putting a basement under the home, mold remediation, lead based paint remediation, septic system replacements or repairs, plumbing, electrical, windows, plumbing, carpeting, flooring, and even appliance replacement are all potentially allowable under the FHA 203k program. This is not the full list of allowable repairs, but just an idea of some of the allowable repairs.

These repairs can be done with a purchase loan or with a refinance loan!