Today’s homebuyers say they want move-in ready homes, but they are also drawn to the bargain pricing of the many distressed properties onthe market. How many buyers say they don’t want a home that needs a lot of work, but then are repeatedly interested in charming older homes, properties in the ideal location, or larger homes, all of which are in their price range simply because they are in need of some repairs!
"Houses in need of rehabilitation
may be available at a significant
discount when compared to homes
that need few or no repairs."
FHA STANDARD 203(k)
TheFHA Standard 203(k) Rehabilitation Mortgage is used to finance both the purchase and work done on homes in need of extensive renovation and/or structural repairs.
This program can help a buyer completely transform a home, whether that means foundation repairs and a new roof, or a beautiful modern kitchen,hardwood floors, and the addition of a master suite.
FHA LIMITED 203(k)
• Cost of work cannot exceed $35,000 –
There are no minimum repair costs
• Total renovation costs must be at least $5,000
• Use of a 203(k) consultant, an expert involved
through out the process including estimating
the cost of repairs and inspecting the work
performed, is required
• Eligible properties include 1 – 2 unit primary
residences, Manufactured Housing, FHA
Approved Condominiums, Site Condominium,
PUDs and HUD REO
• The appraisal report must provide an
“as completed” appraised value that estimates
the value of the property after completion of
• Work must begin within 30 days of the
execution of the agreement, and completed
within the time period dictated by the
agreement, which can be no longer than