Home  >  Home Mortgage Loans  >  Conventional Mortgage

Renovate your new home with an FHA 203k Mortgage Loan

FHA 203k Mortgage Loan

| More

FHA Program for Home Renovation

In 1978, in an effort to promote neighborhood rehabilitation and revitalization, as well as expand opportunities for homeownership, the Department of Housing and Urban Development and the Federal Housing Administration developed the FHA 203k Loan program to make it easy for borrowers to purchase and remodel foreclosed and distressed properties, and for current homeowners to make improvements to their properties.

FHA 203k Mortgage Loan Expert Eric Khan
Contact Eric Khan, our 203k mortgage loan expert at 877-868-2503 or apply online for a FHA 203k home loan.
Check out our Today's FHA Mortgage Rates.

Why Were 203(k) Mortgages Developed?

Traditionally, for a lender to approve a mortgage on a property, the property needed to be in adequate condition to provide security for the loan. If the property was distressed, the lender often required the purchaser to secure financing to purchase the unimproved property, a second loan to pay for the repairs to the home, and then a third permanent mortgage to cover the previous loans. The property had to be repaired before the permanent loan would be issued and the interim loans often had very high interest rates. This Byzantine process deterred many from pursuing foreclosed properties or properties in need of improvements and inevitably the FHA 203k Mortgage Program was created..

How Does a 203(k) Mortgage Work?

Under the FHA 203k mortgage loan program, a qualified borrower can get one permanent fixed or adjustable mortgage to finance the purchase and rehabilitation of a property. The mortgage is based on the estimated value of the property after the repairs. The mortgage is insured by the FHA in order to minimize the risk to the lender.

Who Should Consider a 203(k) Mortgage?

  • Those considering purchasing a property in need of repair or renovations
  • Current homeowners who need financing to rehabilitate their property
  • Those who might not qualify for traditional construction loans
  • Those living in disadvantaged neighborhoods
  • Those with limited funds for a down payment or closing costs
  • Homeowners who wish to make their home more energy efficient

What Type of Repairs are Eligible?

  • Roofing, gutters, and downspouts
  • Heating, ventilation, and air-conditioning systems
  • Plumbing and electrical systems
  • Flooring
  • Painting
  • Lead paint abatement
  • Remodeling, rebuilding, and additions
  • New appliances (range or oven, microwave, trash compactor, washer, or dryer)
  • Handicapped accessible improvements
  • Energy efficient improvements
  • Decks, patios, porches, and fences
  • Basement finishing and waterproofing
  • Windows, doors, and siding
  • Mold abatement or termite removal
  • Connection to public utilites
  • Repair or replacement to septic tanks

FHA 203k Mortgage Loan Expert Eric Khan
Total Mortgage Services is a fully-approved FHA lender and experienced with FHA 203(k) mortgages. Contact us at 877-868-2503 to speak with Eric Khan, our 203k mortgage loan expert or apply online for a FHA 203k home loan so you can purchase a home with no money down. You can also view our low Today's FHA Mortgage Rates.

Call a Total Mortgage expert now at 877-868-2503 to find out how we can customize a mortgage loan with some of the lowest current mortgage rates for you.

Get a Fast, Free, No Obligation
FHA Rate Quote