Most people are aware that the federal government offers an enormous amount of programs to help people in all types of situations. One such program was designed to help people finance the remodel or repair of their home. Over the next few posts we will explain the program, how it can be used, and the homes that are eligible for the loan.
The Federal Housing Administration, or FHA, is a section of the larger Department of Housing and Urban Development, or HUD. FHA offers mortgage insurance programs to protect lenders in the event borrowers do not repay the loan. These programs are provided through approved lenders that comply with the FHA rules and guidelines. HUD does not offer loans to borrowers directly.
The FHA 203k loan was designed to offer financing to fix or remodel a home. It is one way that a neighborhood or even a community can rejuvenate their area. HUD is committed to helping homeowners in all areas and wishes to continue the support of the 203k program.
Now that we have covered the general information of the FHA 203k program, we will begin to discuss some of the details of these types of loans. In the next post we will explain how these loans can be used and the loan amount restrictions.
Detailed program information can be found on our FHA 203k page of our website.