Now that you have a better understanding of the FHA 203K loan let's look at the types of properties that are eligible for this loan.
The home or dwelling must be at least one year old and be a one- to four- unit family dwelling. Cooperative units are not eligible. If a home is to be torn down during the remodeling then at least some part of the original foundation must remain.
Not only are you allowed to repair a home but you can also pursue a conversion. For instance, you can take a one family unit and change it to a two-, three-, or four- family unit. And the reverse is also true. You could take a four-, three-, or two- unit and reduce it down to the size you require.
A condominium is also eligible for the 203K loan, but with certain restrictions. Here is a list of the restrictions:
- The individual condo must be located in a condominium project approved by either FHA or the Department of Veterans Affairs.
- The condo must be an owner occupied property; condos owned by investors are not allowed.
- Only interior renovations are allowed.
- The maximum mortgage amount may not be more than 100 percent of the value of the condo after the improvements are made.
As you can see, the primary focus of this program is aimed at helping future homeowners acquire and renovate a home with affordable financing. This strengthens the local community and allows more people to pursue the American Dream.
Detailed program information can be found on our FHA 203k page of our website.
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