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FHA 203(k) loans can facilitate home renovation through mortgage financing.
An FHA 203(k) loan isn’t merely a mortgage; it’s your pathway to turning your dream home into a reality, even if it currently requires some tender loving care. Tailored to suit both prospective homebuyers eyeing a fixer-upper and current homeowners with renovation aspirations, this financial instrument is purpose-built for your housing dreams.
Whether you’re a prospective homeowner exploring properties in need of enhancements or a current homeowner contemplating a substantial renovation, this loan offers the resources to bring your vision to life. Not only does it cover the property cost, but it also allocates funds for necessary renovations, all under the umbrella of a single mortgage.
There are two primary variations of this loan: the Streamline 203(k) option, suitable for minor renovations with a budget of up to $35,000, and the Standard 203(k) option, designed for more substantial and extensive projects. This breadth of options allows borrowers to find the perfect fit for their specific needs.
Although both loan types can facilitate home repairs, it’s essential to note that FHA 203(k) loans enjoy government backing, typically entail lower credit prerequisites, and can encompass a broader scope of repairs and renovations. Conventional rehab loans, however, might have stricter lending criteria but allow for more “luxurious” renovations.
Indeed, amenities such as swimming pools, BBQ pits, or hot tubs are not eligible for coverage under an FHA 203(k) loan. The loan generally covers improvements that enhance the property’s functionality or appearance.
Projects must commence within 30 days of loan closing and be completed within 6 months.
No, NMB requires that repairs and renovations be conducted by a qualified contractor to ensure all work meets established standards.
If repair costs overrun the loan amount, the borrower will be responsible for covering the additional expenses out-of-pocket.
The prospect of renovating a home, especially one that requires extensive work, can be daunting. But with the right financial instrument, like the FHA 203(k) loan, the process becomes much more straightforward. By consolidating property and renovation costs, this loan streamlines the journey from envisioning your dream home to living in it. If you’re considering such a transformation, don’t hesitate to contact your Nationwide Mortgage Bankers (NMB) Loan Officer today and embark on the journey to shape the future of your renovated home.
*All product information represented on this page is subject to product guidelines and can change at any time. It is for educational and informational purposes only and not a commitment to lend. Please contact your Own It Home Loans Loan Officer today to get the latest product guidelines and guidance on what loan programs fit your unique financial picture and goals.
We make financing your home simple and seamless with our user-friendly online platform, enabling you to easily apply and get pre-qualified for a home loan in no time. Our mortgage specialists offer prompt feedback and support, ensuring a smooth and efficient home financing journey.
OwnIt Home Loans, a DBA of Nationwide Mortgage Bankers, Inc. is approved to do business in AL, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IA, IN, KS, KY, LA, MA, ME, MD, MI, MN, MO, MT, NH, NM, NC, ND, OR, RI, SC, SD, TX, VA, WA, WV, and WY. OwnIt Home Loans is not licensed with the NY Department of Financial Services and does not originate mortgage loans in NY.
Nationwide Mortgage Bankers, Inc. (NMB), going by NMB Home Loans, Inc. in the states of AL, AZ, GA, IL, IA, KS, LA, MN, MT, ND, OK, PA, SC, SD, TX, WV and as NMB Home Loans in KY and MA| NMLS# 819382 | (www.nmlsconsumeraccess.org) 3 Huntington Quadrangle, Suite 403N, Melville, NY 11747 | Branch NMLS 1822931 | (833) 700-8884 | www.nmbnow.com. NMB is in no way affiliated with Nationwide Mutual Insurance Company. “NMBNOW” is a registered DBA of Nationwide Mortgage Bankers, Inc. All loans are subject to credit and appraisal approval. Not all applicants may qualify. Some products and services may not be available in all states. NMB is not acting on behalf of or at the direction of FHA/HUD/USDA/VA or the federal government. By refinancing your existing home loan, your total finance charges may be higher over the life of the loan. This is an advertisement. Own It Home Loans; Own It Team; are registered DBAs of Nationwide Mortgage Bankers, Inc (“NMB”). Licensed under the California Finance Lenders Law by The Department of Financial Protection and Innovation #60DBO73939 | Georgia Residential Mortgage Licensee | MA Mortgage Lender License #ML819382 | Licensed by the N.J. Department of Banking and Insurance | Licensed Mortgage Banker – NY Department of Financial Services. | Rhode Island Licensed Lender | Licensed by the Virginia State Corporation Commission. Additional state licensing information can be found at https://nmbnow.com/disclosures-and-licensing/
By refinancing your existing home loan, your total finance charges may be higher over the life of the loan.
