What is a 203K Loan?
An FHA 203k Loan is a rehab loan backed by the Federal Housing Authority. It allows home buyers to borrow to make repairs to a property after closing.
Why would I use a 203K Loan?
Typically for most conventional loan approvals the property has to be habitable and pass inspections. Many times the seller can not fix problems that may arise such as furnace issues, old roof, peeling lead paint, non-functioning plumbing or electrical systems. When these deficient conditions exist, a bank may deny a conventional loan application. If you apply for a 203k Rehab Loan, however, you may be able to borrow enough money to purchase the home AND make pre-approved repairs after closing.
How much can I borrow with a 203K?
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