What's an FHA 203(k) mortgage?
IFHA 203(k) loans make it easy for borrowers to purchase and remodel homes, including foreclosed and distressed properties. Current homeowners can also use the program to make improvements to their properties.
Why choose a 203(k) loan?
Compare this to the traditional approach, where you first get a mortgage for the value of the unimproved property, secure a second loan to cover renovations, make the improvements, and then get a final, permanent mortgage to pay off the initial loan and the construction loan. Not quite as smooth.
How do I qualify?
Qualifying under standard FHA underwriting guidelines is a good start, whether you’re opting for a standard 203k, which is for extensive and structural repairs, or a streamline 203k, which is for more general repairs under $35,000. Your future (or current) home, however, must be one of the following:
- A 1-4 family house that has been completed for more than a year
- A demolished home with an intact foundation
- A home you want to move to a new location
Also remember that while most typical repairs (such as roofing, heating, plumbing, etc.) are eligible, there are some exceptions, like landscaping. Make sure that your repairs plans qualify you.
Why pick Total Mortgage?
After 17 years of success, it’s safe to say that we know what we’re doing. Plus:
- We have some of the lowest interest rates in the country.
- No pre-payment penalties, ever. Pay off all your debt as fast as you can. We promise not to get grumpy about it.
- No pushy loan officers, just experienced professionals who will educate you as they help you get the financing that makes sense for you.