Advantages of using a FHA 203 K Renovation Loan

Real Estate Agent with Prudential Network Realty

Are you thinking about buying a home in St. Augustine, Fl that needs work? You may want to consider a FHA 203 K Renovation Loan. Wouldn't it be fun if every home you looked at in your price range could be viewed from the perspective of what it could be, instead of what it is?

An FHA 203 K Renovation Loan allows Buyers to obtain a loan covering the mortgage & remodeling work with a low interest rate and a 3.5% down payment on the total amount of the with FHA. HUD guidelines allow up to 110% financing to accommodate for the renovation. You can create your dream house without large out of pocket costs and you have the potential to build more equity in the property after the renovation is complete. Another benefit is that you can take advantage of the AS IS homes for  sale in St. Augustine, Fl that are priced below market value because you would have the funds available to do the renovation. All work must be completed within 6 months. My job is to help you find the perfect property and put you in touch with a Mortgage Consultant that is experienced with this type of loan which is crucial to the success of this process.

The FHA 203 K Renonavtion Loan Process Is:

Get pre-approval through an experienced FHA 203 K Mortgage Consultant

Make an offer and get it accepted

Do the Inspections and submit the loan package

Choose a contractor and secure the bids for the work

Order an appraisal with the bids included

Submit the appraisal and bids to the underwriter with other loan conditions for final approval


Work Begins and is completed within 6 months

The FHA 203 K Renovation loan amount is determined by the lesser of the following: The purchase price or as-is value of the home plus the total renovation costs or 110% of the after improved value of the home.


Comments (2)

Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

This was a very timely post. I have buyers who will be using this type of loan in the near future. We call them rehab loans here.

Aug 22, 2010 04:07 AM
Ann Van Fleet

Thanks for commenting I think this is a great program that most people are not aware of.

I love Sonoma!

Aug 22, 2010 06:59 AM