FHA 203k Standard Loan

FHA 203k Standard Loan

The Standard FHA 203k program is the perfect loan solution for financing major renovations. The loan has been around since 1978 and is growing in demand in today’s real estate market.

With aging home inventory, lack of new housing starts, and an influx of distressed properties, the 203k Standard loan is quickly becoming a very popular loan program.

The loan provides you with the financing required to do major remodels and renovations or total scrapes to dated homes in popular neighborhoods that have the best schools, services, and amenities.  In many cases, the improvements result in instant equity at the completion of the renovation.

The FHA 203k Standard loan allows you to finance both the acquisition and major post-closing renovations to turn a lest-than-perfect home into your dream home.

The FHA 203k Standard loan allows for major structural improvements and additions and differs from the FHA 203k Streamline which limits renovations to $35,000.

Borrowers can make a wide range of improvements including:

  • Structural changes
  • New additions
  • Increasing the building footprint
  • Moving a home to a new lot
  • Retrofit a home to make it handicap accessible and much more.

The benefits of the loan program are enormous including:

  • Ability to make major structural improvements and additions
  • Potential to borrow 110% of the after-renovation value (110% LTV)
  • Very low 3.5% down payment (which can be gifted)
  • Flexible credit qualifying and ability to roll in most closing costs
  • Sellers concessions allowed up to 6 percent
  • 1-4 unit owner occupied properties
  • Use it for distressed and non-distressed properties major renovations
  • Loan size set by FHA for your area, max loan based on your credit limit for your area and purchase price of the property
  • Available for both purchase and refinance loans
  • Ability to buy a duplex, triplex, fourplex, renovate it, then live in one unit while you are collecting rental from the other units.  Nice.

The FHA 203k Standard loan program is the right product at the right time. No other loan program offers this many benefits of effects this many people.

  • The seller wins because they can sell a home that needs major upgrades
  • The neighborhood wins a revitalized that helps values in the neighborhood
  • The Buyer wins because they can finance the purchase and renovation with one loan
  • The Realtors win because they made a sale helping buyers and sellers
  • The local economy wins because contractors, vendors, laborers are employed
  • The community wins because new jobs are created

It is the perfect time to take advantage of the low rates, depressed home values.  Use the FHA 203k Standard loan program to fund the purchase and major renovation to own the home of your dreams.   Get pre-qualified today so that you can shop for your dream home purchase and renovation with confidence.

FHA 203k Standard Loan Guidelines


Your message was successfully sent. Thank You!

Leave a Reply

Your email address will not be published.