Bayer Home Loan Team - 203(k) Loan

203(k)

A 203(k) loan helps you cover the costs for your new home. It also covers the costs of renovations within your new or current home.

Video: Learn About 203(k) Loans

What is a 203(k) Loan?

The FHA 203(k) loan lets you purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the lower of the projected market value following repairs or purchase price plus renovation costs.

Who Qualifies?

A minimum down payment of 3.5%
A credit score of 620 or higher
You currently have no other FHA loans
You DO NOT have to be a first-time buyer

Benefits of a 203(k)

203(k) loans are designed to improve, update, and modernize the home.
The loan enables you to purchase foreclosure properties that require repairs.
You can purchase a home that does not require repairs and finance the cost of “modernization” or cosmetic repairs.
The loan allows for 1-4 unit dwellings, including condominiums.

Up to six months of PITI (principal, interest, tax
*Where zoning allows, a 203(k) loan can be used to convert a single family dwelling to 2-4 units and vice versa.and insurance) payments can be financed to assist those who would otherwise be required to make double-housing payments. Consultant will determine the number of months house will be uninhabitable for financing of payments.*