For whatever reason, you have heard of the FHA 203k and are intrigued by its great potential to build the house of your dreams. The question is though, are you qualified for this renovation loan? Will you be able to take advantage of all of the great things it has to offer?
Here are some of the FHA 203k borrower qualifications:
- You must be looking to buy and renovate a primary residence as an owner occupant* or renovate your existing home.
- You do not have to be a first time homebuyer. Both purchases and refinances qualify
- While HUD does allow some non-profit groups to qualify, many lenders do not offer those loans
- Borrowers may have higher debt to income ratios (DTI) and credit scores down to 640 and sometimes below
* The FHA 203k program permits a non-occupant co-borrower