The FHA 203k loan is a renovation loan program that provides funds for both the purchase and renovation of a home. There are two types of an FHA 203k loan. The first is normal FHA 203k loan, which is given for properties that need structural repairs such as a new roof or a room addition. The second is the streamlined FHA 203k loan, which is given for non-structural repairs such as painting and new appliances. The minimum Loan Amount is $5,000.
Benefits of a FHA 203k loan:
A.) Low out-of-pocket renovation rehab repair costs.
B.) Ability to make your house your own home.
C.) Low credit scores are considered.
D.) Different types of mortgage programs are available like fixed rate, adjustable rate, and term length options available.
Requirements of a FHA 203k loan:
A.) Minimum credit score of 620.
B.) Max debt to income ratio of 43.0%
C.) Available for primary residences only (owner occupied).
D.) All home improvements must become a permanent part of the property.
- structural alterations and reconstruction
- modernization and improvements to the home's function
- elimination of health and safety hazards
- changes that improve appearance and eliminate obsolescence
- reconditioning or replacing plumbing; installing a well and/or septic system
- adding or replacing roofing, gutters, and downspouts
- adding or replacing floors and/or floor treatments
- major landscape work and site improvements
- enhancing accessibility for a disabled person
- making energy conservation improvements
Got any questions about a FHA 203k loan in Connecticut then text or call me now at 203.913.6016