Home Improvement Loans: 203k Loans

Home Improvement Loans

The Home Improvement Loan is designed to help Home Owners and potential future Home Owners get a loan based on future improvements of the house.

If the house needs some work done then typically a normal loan like a Conventional loan will not finance the loan due to home improvements over $2,500.  This type of financing will call for a Home Improvement, Rennovation, Rehab, Full 203k and 203k Streamline loans.

Instead of paying out of pocket or financing the costs with a credit card, we can do a 1 stop shop for your financing needs with home improvements rolled into the loan.

Don’t worry about the appraised value if the house is in bad shape, the loan is based on the after improved value of your improvements.

Typically these loans can close in 30-45 days, with contract work started within 30 days of closing.

Below are some guidelines explaining 203ks

  • Less fees vs a Full Renovation – cheaper
  • No Reserves – Full 203k requires reserves
  • Restricted to $35,000 in repairs – *no major structural repairs* Over 35k is Full 203k.
  • NO HUD CONSULTANT – this is the biggest distinction here compared to full renovation.  Saves time and delays.
  • Owner Occupied / 1-4 family
  • No Inspections – over 15k in repairs just needs to verify work is done.
  • No Contingency Added
  • Repairs must be completed in 6 months – no extensions, after 6 months must be kicked to full renovation.

Rennovation Specialist

Renovation programs are great for 1st time home buyers providing solutions for needs and wishes into reality.

With Foreclosures and short-sales on the rise, many homes on the market need a lot of T.L.C and most of the time the previous owner had not taken complete care with the home, this is repair the 203k loan can shine for you.

Remember, not all Mortgage Professionals offer 203k Loans.  Consult with a Renovation Specialist who can guide you through the decision in Streamline vs Full Renovation.  By the way…I offer both 🙂


One response to “Home Improvement Loans: 203k Loans

  1. Thanks for this information and making it sound like it is a peice of cake. Mortgage cnsultants that do not provide 203k loans discourage the process. What area are you in?

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