Did you know that you could purchase a fixer upper and have renovation costs rolled into your
mortgage payment? This fixer upper loan can open up more home options and may result in a
lower mortgage payment than a home that is turnkey! It's also a great option to update and
customize your home before moving in. Take a look at the benefits of a remodel home loan:
3.5% Down Payment Options
Low Interest and 30 year Fixed Rates!
Roll the Cost of Renovations into The Loan!
Credit Scores as Low as 620
Annual Income as Low as $30K
Minimum Purchase Price of $100k
Add Instant Equity to Your Home!
Reasons You May Wish To Do a Remodel Home Loan:
It’s an inexpensive way to get the upgrades you want in a home! By rolling the costs of renovations into the mortgage, you can easily have an upgraded kitchen, patio, deck, bathrooms, flooring and more!
You have the ability to personalize your home! With the above mentioned upgrades, you can choose to create a home that shows more of your personality for an affordable price.
Add instant equity to the home! By performing these upgrades, you actually increase the value of the home instantly! So, not only do you get to make your house more to your liking, you get to put some future money into your pocket as well!
FHA Renovation Home Loan Program
An FHA Renovation Loan, or FHA 203K Home Loan is a type of insured mortgage from the Federal Housing Administration that allows for a borrower to take out a loan to purchase a home and to also renovate the same home. This is a single loan that is to fulfill both of the above criteria. Like regular FHA loans, an FHA 203K loan must be taken out for a borrower’s primary home and is available for low to median income families. This loan program offers low interest rates, a competitive down-payment option of 3.5%, as well as being government guaranteed. Unlike the USDA Renovation Loan Program, any home, regardless of location, that requires repair or renovation is eligible for the FHA 203K Loan Program!
What Are The Requirements for the FHA Renovation Home Loan Program (FHA 203K)?
In order to qualify for the FHA 203K Loan Program the borrower will need to satisfy the following requirements:
The home being purchased must be the primary home for the borrower. However, unlike the USDA Renovation Loan program, this home can be located anywhere.
The borrower does not have to meet income minimum requirements or limits. However, we’d recommend that a borrower’s income be enough to keep a debt to income ratio of 50 percent or less. As a program requirement, the debt to income ratio cannot exceed 50 percent.
The borrower meets the credit score requirements set by the lender. We recommend a credit score of at least 580 to qualify for the FHA Renovation Loan Program.
The property being purchased needs renovations or repairs to meet the FHA safety and sanitary guidelines. These guidelines are similar to the HUD Handbook guidelines for the USDA Renovation Loan Program.
I’ve Decided: I Want a Home Renovation Loan!
Our Loan Experts can help see if you qualify to buy your new home