Designed for home rehabilitation purposes, FHA 203(k) loans can help pay for your home
renovations. These loans are available both as a refinance and purchase. Thus, you can
borrow against the equity in your home for home improvement and you can also get a single
mortgage to finance both purchase and renovation of the home.
FHA 203(k) Loans can be a great option for home buyers who can meet these requirements:
Be able to prove that money was spent on renovating your home
Prove a decent credit score (580 or above)
List of improvements (some are not eligible for financing such as installing swimming
If you meet these requirements, you may be able to qualify for an FHA 203(k) Loan.
HOME PURCHASE WITH PLANNED IMPROVEMENTS VIA FHA 203(K) LOANS
To encourage the revitalization of older Southern California neighborhoods or damaged homes,
FHA provides two types of loans to help homebuyers reserve a portion of loan funds to
accomplish non-structural and structural repairs.
A standard 203(k) loan is provided for properties with the need for
203(k) Eligible Repairs and Improvements include:
Repair/Replacement of roofs, gutters, and downspouts
Repair/Replacement/Upgrade of existing HVAC, plumbing, and
Minor remodeling, such as kitchens, which does not involve
Exterior and interior painting, including lead based paint
stabilization or abatement
Weatherization, including storm windows and doors,
insulation, and weather stripping
Purchase and installation of appliances, including
free-standing ranges, refrigerators, washers/dryers, dishwashers, and
Improvements for accessibility for persons with
Repair, replacement, or the addition of exterior decks,
patios, and porches
Basement waterproofing or remodeling which does not involve
Window and door replacement and exterior siding
Well or septic system repair or replacement
Ineligible Repairs include:
Luxury items and improvements that do not become a permanent part of the real
Some examples include barbecue pits; bathhouses; dumbwaiters; exterior hot
tubs, saunas, spas, and whirlpool baths; outdoor fireplaces or hearths;
photo murals; swimming pools; television antennas and satellite dishes;
tennis courts; tree surgery.
However, the homeowner can use the 203(k) program to finance such items as
painting, room additions, decks, and other items, even if the home does not
need any other improvements.
A Limited 203(k) loan covers non-structural upgrades, such as painting, new counters, cabinets, patching holes, replacing doors, repair/installation of HVAC systems, and purchase/installation of new appliances. The maximum repair amount which can be financed using a Limited 203(k) loan is $35,000 with no minimum requirement for repairs.
Eligible properties for a 203(k) loan include:
Attached / Detached Single Family Residential properties
2-4 Unit Properties
Doublewide Manufactured Housing
TIPS FOR RECEIVING LOANS TO RENOVATE YOUR HOME:
Before applying to receive a home renovation loan, decide as best you can regarding how much money you will need to begin your home renovation. If you hire a contractor, ask them to give you an estimate on the total cost of the home repairs. Once you have that specific number, discuss the possibility of a home renovation loan with us. Different loans offer different amounts to borrowers, so talking to a licensed Loan Officer can help determine the specific loan and amount that fits your project's goals.
For any further questions about the types of home renovation loans we offer or whether you qualify for an FHA 203(k) loan, Contact CostPro Lending Team.
Disclaimer: This communication is for informational purposes only, this is not a commitment to lend. Individual buyer's financial circumstances may be different and may result in different interest rates, costs, and payments. All programs are subject to change or cancellation at any time and without notice. Please consult your licensed Loan Originator to learn more about mortgage products, your eligibility, and ask for an official Loan Estimate before choosing your loan.
We recently had the distinct honor and pleasure to work with Mike Zamani (of CostPro) to refinance our home mortgage. Mike made our journey through today’s finance world a smooth process and actually somewhat easy. He was always available to answer questions, offer explanations promptly, patiently, and competently. Mike’s communication style and even his voice, which is crisp, succinct, yet calming helped us feel we were in very good hands. Beyond Mike himself, his team were also very efficient, competent, and worked with us to assure things happened smoothly. We highly recommend Mike Zamani! A gentleman and scholar indeed, with a great personality to boot!
Thanks again Mike!
It's the day after I closed on my Re-Fi and I still can't believe it!
I was contacted by a bank and after looking at my file, they said I
needed to get a co-signer! I forgot about doing it until I got a
call from Tony. He looked everything over and thought it was doable.
They put Tony through the wringer. No matter what we gave them, they
wanted more. Finally, they ran out of things to ask us and said YES!
If anyone but Tony had called me I would not of had the same result.
I will be forever grateful!!
To whom it may concern,
this is to confirm that Brian Mays, Lee Garoutte, and their team are
some of the most dedicated people to work with, they went out of the
way and bent over backwards to make sure that my loan went through.
They went over and above to get the task completed. I highly
recommend Brian, Lee, their team to anyone who is trying to get
their loan approved.
Dear Tony Christensen, I just wanted to say thank you for all your
help refinancing my home, you were very helpful and explained every
detail so that I could understand every step we were doing. Thank
you very much for all your help and I am very happy that I chose to
refinance with you. I will recommend you to any of my friends that
want to refinance. Thank you again for all your help, You Were
I am very glad to say, when I called Costpro and Michael answered my
call. Great personality and experience working with him. I totally
recommend working with him.
Mike Z at Costpro Lending was a pleasure to work with. We called him
on a few issues we wanted answers to and would always get back to us
in a timely manner. A couple times we wondered how thing were
progressing through the holiday and the next day we received an
update from him. Great customer service. We would definitely
recommend. Thank you Mike Z…:)