Buy and upgrade in the same breath.
Guess what? You can now buy and renovate your home with one loan and one monthly payment. With the FHA 203K renovation loan, you can purchase or refinance a home and also include additional money for repairs or renovations. Take a look at the loan advantages below:
203K Full Program Advantages
- Repair/renovation costs can be rolled into the loan
- Major items are allowed (i.e. foundation)
- Low down payment (3.5%) and seller can pay up to 6% toward closing costs*
- Close before repair/renovation begins
- Only one closing. Money disbursed on a draw basis after closing, as construction is completed
- Loan amount can go up to 110% of the “after-improved value” from the appraisal
- Buyer can include optional renovations/upgrades
*Additional restrictions may apply. Contact your PrimeLending loan officer for more details.
203K Streamline Program Advantages
- Same as advantages above in the full program with two exclusions: neither repair/renovation costs nor major items such as a property foundation can be included in the loan.
Repair & Renovation Examples
- Repair foundation
- Replace roof
- Paint interior & exterior
- Remodel kitchen/bath
- Upgrade to central heat/air
- Energy efficiency improvemnts
- Landscaping/exterior repairs
- New built-in appliances
- Mold repairs or mold remediation