What is a 203(k) Loan?

Benefits of a 203(k)

The FHA 203(k) loan lets you purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the lower of the projected market value following repairs or purchase price plus renovation costs.

Who Qualifies?

  • A minimum down payment of 3.5%

  • A credit score of 620 or higher

  • You currently have no other FHA loans

  • You DO NOT have to be a first-time buyer

  • 203(k) loans are designed to improve, update, and modernize the home.

  • The loan enables you to purchase foreclosure properties that require repairs.

  • You can purchase a home that does not require repairs and finance the cost of “modernization” or cosmetic repairs.

  • The loan allows for 1-4 unit dwellings, including condominiums.

 

Up to six months of PITI (principal, interest, tax
*Where zoning allows, a 203(k) loan can be used to convert a single family dwelling to 2-4 units and vice versa.
and insurance) payments can be financed to assist those who would otherwise be required to make double-housing payments. Consultant will determine the number of months house will be uninhabitable for financing of payments.*

To view legal disclosures and important notices, please click the following:   

927e9dc9-4604-4590-adbc-72ebd55af66f.png

© 2019 E Mortgage Management. All Rights Reserved.

| NMLS# 2926 

This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site. 856-366-9522 is not for use by New York borrowers.

  • EMM Facebook
  • EMM LinkedIn