Similar to conventional renovation loans, the 203k offers a solution that helps borrowers by providing a single, long - term, fixed - or adjustable - rate loan that can cover both the acquisition and rehabilitation of a property. 203k loans save borrowers time and money.

FHA 203K Features

• Higher level of supervision of homeowner than other programs
• Loan amount based on Completed Value but capped at FHA maximum mortgage limits in your county. *adjusted annually
• Very Low 3.5% minimum down payment
• Relaxed Credit and Income qualifying guidelines
• Some Limits on types of repairs
• Investors (non-owner occupied) prohibited
• Fixed or Adjustable rates (ARM’s) available
• Can be combined with FHA’s Officer Next Door and Teacher Next Door home ownership programs.
• Can finance up to six months of mortgage payments for owner-occupied properties to cover non-occupancy costs during construction. For example, if you have to spend six months renting an apartment while your home renovation takes place, you can roll those expenses into your loan amount.

Homestyle® Features:

• Loan amount based completed value but capped at the current FannieMae loan limits. *adjusted annually
• Low 5% minimum down payment
• Reasonably good credit and verifiable income required
• Virtually unlimited on types of repairs but funds for renovation are capped at 75% of the completed value of the property.
• Second homes and investment properties allowed (some limitations apply)
• Fixed or Adjustable rates (ARM’s) available
• Can finance up to six months of mortgage payments for owner-occupied properties to cover non-occupancy costs during construction. For example, if you have to spend six months renting an apartment while your home renovation takes place, you can roll those expenses into your loan amount.