203k Loans

203k Loans – CA only

FHA 203k Rehab Home Loans; whether you are purchasing a home that needs substantial work or only cosmetic repairs.  We have the FHA 203k home loan for you.
  • Minimum 580 Fico Score to Qualify for the 203k loans
  • Purchase or Refinance and rehab all in one home loan
  • Minimum $5,000 – $35,000 rehab amount for the Streamline
  • Unlimited rehab amount on Standard 203k Loans
  • Single Family Residence
  • Allows financing on 1-2 Unit dwellings
  • Condominium Interiors
  • Up to 6 months, NO Payments if necessary
  • Bring your home up to FHA Minimum Property Standards with this loan
  • Owner Update/Renovate Loan
  • BUY and FIX it ALL in ONE LOAN
  • Unlimited Repairs up to FHA loan limits
203k Rehab financing can turn your house into your dream home

FHA’s 203k loan program is designed to finance the purchase and renovation of your home, all in one loan.

Is a 203k Loan Right for You?                                   

203k construction
203k construction
  • Buy a “Fixer-upper” or REO property needing renovation
  • Get funds to both purchase and upgrade your dream home
  • Refinance and renovate your existing home
  • Advantages of 203k Loans
  • Loan amount based on the home value including renovations
  • Yes it is only one loan needed to both purchase and improve
  • Refinance and rehab your own home
  • It can be used to buy property otherwise not eligible for financing

Who Qualifies?                                                          

  • Borrowers need a minimum down payment of 3.5%
  • All applicants need a credit score of 580 or higher
  • They can not currently have other FHA loans
  • You DO NOT have to be a first-time buyer

*Ask Sheryl Arndt about additional requirements.

Even more all FHA loans including the the FHA 203k loan limits vary by counties. They currently range up to $679,650 for a single family property. To check the current loan limits by county, go to FHA Loan Limits or check with us for the current limits.

 Additional 203k Guidelines
The Step by step Process
1.   Contact us to get pre-approved for FHA 203k loans

We will go over a loan application and will review your documentation. These documents must support your application numbers to determine the amount you will be approved for. We will discuss your different loan options and determine the best loan program to fit your needs.

NOTE: The purchase contract should clearly indicate the loan type to be an FHA 203(k).

2.   Your purchase contract is accepted by the seller

So your Realtor will forward the accepted contract to your loan officer to set up your loan file for loan approval processing. Due to the escrow time frame this is when the clock starts ticking. Likewise you will need to get with your contractor and/or your FHA consultant to finalize the estimate and scope of work in which is going to be done. Any other required or desired inspections, such as a home inspection, termite inspection, well or septic inspections, roof inspection or HVAC inspections, will be ordered at this time.

3.   Choose your contractor and obtain bids

You must research and select licensed contractors with whom you will feel comfortable. Likewise all contractors must provide specific documentation as previously listed to be accepted for use in the renovation program. Consequently you will need to provide a complete contractor package for each contractor completing work on this project.

4.   Insurance

In most cases, a homeowners policy will suffice. On some occasions a builders policy will be required. An insurance agent can provide guidance here.

5.   Once all the conditions for the loan have been met, the loan will fund and close

Consequently the escrow disburses and pays the seller, Realtors and other involved in the sale in full at closing. Then as a result the funds for the repairs are placed in an escrow account to be disbursed as the work is done. If mortgage payments are included in the escrow, the payments will be paid when they are due. So all repairs must start within 30 days of closing and be completed within six months.  203k Additional Guidelines

What is a 203k Loan
The FHA 203k loan lets you purchase or refinance and rehabilitate a property with one loan closing. Consequently 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.

Benefits of a 203k Loan

  • Because a property sold “as-is” often would not qualify for a standard FHA loan. Therefore 203k loans are designed to improve, update and modernize the home.
  • Above all this loan will enable you to purchase foreclosure properties that require repairs. Therefore most HUD Foreclosure properties could benefit from a 203k loan.
  • Also you can purchase a home that does not require repairs and finance the cost of “modernization” or cosmetic repairs. (See eligible improvements.)
  • Also the loan allows for 1-4 unit dwellings, including condominiums, PUD’s and manufactured homes.
  • Also a 203k loan can be used to convert a single family dwelling to 2-4 units where zoning allows. (See eligible properties.)
  • Up to 110% (100% on condominiums) of the after improved value of the home may be used as basis for mortgage calculations. (The appropriate LTV factor is then applied.)
  • Up to six months of PITI (principal, interest, tax 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. (Consultant K only)
  • This benefits buyers who purchased a property with cash who can then use the 203k program to complete repairs/ modernization and replenish funds used at the time of purchase. Finally the mortgage must close within 6 months of cash purchase.
  • Another point is this loan can be used for complete reconstruction of a home on its original foundation.
  • Properties in “below-average” condition can be upgraded through repairs and maintenance. (i.e., new roof, fix broken windows, and lead paint abatement)
  • Certainly you can increase square footage by building an addition, building a second floor or finishing a basement or attic space. (Standard 203k only.)


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