203(k) Loan
Make upgrades to your existing home.
A home improvement loan might be just the fix you need.
Home Loans Conventional Loan
Whether you’ve found a fixer-upper in a great neighborhood or you want to make upgrades to your existing home, one of Lending Hand’s options could be the answer for you.
Inventory is lower today than it was five years ago, making it harder to find a house you love in the neighborhood you desire. That’s why many homebuyers are jumping on fixer-uppers.
A 203(k) mortgage can help you buy a home in most any condition, make immediate improvements, and pay for them over time. Depending on the financing option you choose, improvements can range from minor updates to more extensive remodeling and renovations, including bringing severely damaged or neglected properties up to habitable, insurable standards. With a 203(k) loan, you’ll have just one application, one loan approval, one closing, and one monthly mortgage payment.
A 203(k) mortgage can help you buy a home in most any condition, make immediate improvements, and pay for them over time. Depending on the financing option you choose, improvements can range from minor updates to more extensive remodeling and renovations, including bringing severely damaged or neglected properties up to habitable, insurable standards. With a 203(k) loan, you’ll have just one application, one loan approval, one closing, and one monthly mortgage payment.
203(k) renovation loans aren’t just for new homebuyers — they’re also for homeowners looking to upgrade their current living space.
Instead of managing two different loans, you can finance the expense of home repairs or a remodel at the current low interest rates and refinance your mortgage in the process. And the loans can go as high as 110% of the after-improved value.
FHA 203(k)
The FHA Full 203(k) lets you borrow up to 110% of the after-improved value to pay for an assortment of projects designed to remodel and repair single-family properties.
- Structural alterations and reconstruction
- Roofing, gutters, downspouts
- Flooring, tiling, carpeting
- Elimination of health and safety hazards
- Changes for improved functions and modernization
Frequently Asked Questions
- Applicants must meet the standard loan program credit qualification requirements.
- The property must meet renovation loan requirements.
- An appraiser’s estimate of what the property value will be with completed improvements must support the mortgage amount.
- Down payment and closing cost requirements may vary depending on the loan type.
Depending on the financing option you choose, improvements can range from basic repairs to minor updates and upgrades to more extensive remodeling and renovations, including bringing severely damaged or neglected properties up to habitable, insurable standards.
Properties that are sold “as-is” often would not qualify for a standard FHA loan. 203(k) loans, however, are designed to improve, update, and modernize the home.
Properties that are sold “as-is” often would not qualify for a standard FHA loan. 203(k) loans, however, are designed to improve, update, and modernize the home.
Everyone’s financial situation is different, so it’s important to figure out what you can comfortably afford to borrow, which depends on four factors:
- Your debt-to-income ratio (your total monthly payments as a percentage of your gross monthly income)
- Cash you have available for a down payment and closing costs
- Your credit history
- The value of the home you’re buying
There are many great reasons for refinancing, including:
- You’d like to lower your interest rate or monthly mortgage payments
- You need cash, fast
- You’d like to consolidate debt
- You’re looking to shorten your payback term
- You want to switch from a variable-rate to a fixed-rate mortgage to create regular, predictable payments
- You’d like to get a variable-rate mortgage with better terms
The best way to start any mortgage process is with the help of a lender that’s 100% on your side — and that’s Lending Hand. Simply call 800-555-12324 or fill out our quick, no-obligation and confidential GET PRE-QUALIFIED FORM now.
Your Mortgage Specialist will start working right away to find your ideal mortgage and will be with you every step of the way. This streamlined, personalized approach means the entire process will be as simple and stress-free as possible. In fact, it can all be wrapped up in as little as 21 days after receiving all your documents. There’s just no better way to take the next steps toward a better financial future.
Your Mortgage Specialist will start working right away to find your ideal mortgage and will be with you every step of the way. This streamlined, personalized approach means the entire process will be as simple and stress-free as possible. In fact, it can all be wrapped up in as little as 21 days after receiving all your documents. There’s just no better way to take the next steps toward a better financial future.
Get pre-qualified today!
We are here to help you find the right mortgage loan for your needs.
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