Buy and finance home repairs all in one loan with a small down payment.
Minneapolis, MN: The FHA 203k rehab loan program allows home buyers the needed money to not only buy a home, but the money needed to also improve or repair the home all in one single loan with a small down payment.
There is no doubt that the current real estate market offers a lot of homes needing a little TLC, commonly known as fixer-uppers. Many of these homes are missing appliances, ruined carpet & flooring, holes in the wall, etc. Standard mortgage loan programs DO NOT finance homes in less than move in condition. Many of us have seen firsthand, or have heard stories about foreclosed home that have been torn up, stripped, vandalized, etc. This is a mortgage loan that helps both sellers sell these homes, and buyer buy these homes. A win-win for sure!
This is where a little known program called the FHA 203K Rehab loan comes in. The FHA 203K Rehab loan is becoming very necessary for the purchase of many Bank Owned, foreclosure, and short-sale properties needing repair.
There is a similar program from Fannie Mae, known as the HomeStyle refinance loan, which mirrors most of the requirements of a 203k loan.
The FHA 203k rehab loan comes in two versions. The full 203k, which allows for more expensive, and more complicated rehab, and the 203k streamline loan, which as the name implies, is more streamlined and easier, but also limits the total cost of repairs, and the scope of repairs.
Your Mortgages Unlimited Loan Officer will be able to guide you to which version of the 203k rehab loan will be needed in each case.
Is a 203k Loan Right for You?
- Buy a “Fixer-upper” or REO property needing renovation
- Get funds to both purchase and upgrade your dream home
- Can be used to renovate your existing home too
Advantages of 203k
- Loan amount based on the home value AFTER repairs/renovations
- Only one loan needed to both purchase and improvement
- Refinance and rehab your own home
Can be used to buy property otherwise not eligible for financing
- A minimum down payment of 3.5%
- A credit score of 640 or higher
- You currently have no other FHA loans
- You DO NOT have to be a first-time buyer
- Home will appraiser for the purchase price PLUS repair costs
- Loan amount meets FHA Loan limits, which vary by county (Check FHA limits in your area)
We offer the 203k loan in Minnesota, Wisconsin, and South Dakota. It all starts with a simple, no obligation loan application, which most people can complete online in about 10-minutes. You can also call our rehab loan experts, at (651) 552-3681.