FHA 203k: Not Just a Purchase Loan – Refinance Options Available!

by Aiman Abozeid on December 19, 2011 · 0 comments

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Many mortgage companies and banks are advertising their low rates for FHA 203k purchase loans. There is no doubt that for people looking to get a home in need of some modest repairs and updates the FHA 203k is a great financial move. However, that loan is not a purchase only type of mortgage. It can also be used for people who currently own a home and would like to refinance to a low rate while getting a small amount for some renovation projects.

Minimum Amount for Repairs

In order to refinance using the FHA 203k the borrower must get at least $5000 to be used for either repairs, improvements or both. For people who are real handy and don’t mind doing the work themselves, this small amount can go quite a ways towards paint, carpet or new appliances. It is also a good amount for someone that has a modern home but simply needs a little extra money for something like a new roof or storm windows.

Types of Improvements

There are some restrictions on the type of improvements that can be made on a home using the FHA 203k program. Here is a list of the majority of the items allowed.

  • Adding on or repairing a bathroom
  • Installing solar panels
  • Adding appliances to the home that are more energy efficient
  • Safety items like repairing damaged handrails on stairs or removing old lead paint
  • Repair to necessary systems in the home such as plumbing, heating, ventilation, electrical or air condition.
  • Repairs to the floor or a new floor
  • Outdoor projects such as decks, landscaping, patios, fencing and driveways

For additional program information, visit our FHA 203k page on our main site or view our current 203k mortgage rates. To see if you qualify, contact me below or apply online!

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