FHA Standard 203k Rehabilitation Mortgage

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This program is to be used to renovate an existing property, not build a new construction home. The home must have been completed at least one year before the case number assignment date for the new 203k loan to qualify. Eligibility will be determined by examining the borrowers’ income, assets, liabilities, and credit history and score, as well as the market value and condition of the property to be financed.

• Minimum repair cost of $5000
• Use of a 203k consultant, an expert involved throughout the process including estimating the cost of repairs and inspecting the work performed, is required
• Only one General Contractor may be used
• Work must begin within 30 days of the execution of the Agreement
• Work must be completed within six months, or the time period dictated in the Agreement, whichever is shorter
• The amount borrowed must be within FHA loan limits which vary by county and are higher in parts of the country where real estate is more expensive
• The appraisal report must provide an “as completed” appraised value that estimates the value of the property after completion of the renovation work
• 620 minimum FICO score
• 10 year, 15 year, 20 year, 25 year, and 30 year term options
• One or Two Unit Homes, Manufactured Homes, Approved Condos, PUDs
• Primary Residence Only
• Projects must only include allowable improvements