FHA 203k Limited Loan are Available!

Receive a quote on a FHA 203k Limited Loan today.

The FHA 203k Limited Loan

The FHA 203k Limited loan is used when a home needs non-structural/cosmetic work. The total renovation budget must be less than $35,000. There is no minimum dollar amount for repairs. The Limited loan does not require a HUD Consultant. As the borrower, you will complete a written work plan, which will demonstrate your understanding of the contractor’s bid. Mortgage payments cannot be financed with this loan.

POTENTIAL WISH LIST:

  • Replace windows to increase energy efficiencies
  • Refinish flooring
  • Replace countertops in kitchen and baths
  • Repair roof
  • Paint
  • Replace tub and showers
  • Add gutters and downspouts
  • Repair septic
  • Replace siding
  • Update HVAC, electrical, and plumbing

Common Questions From Prospective Borrowers

CAN THE CONTRACTOR GET PAID IN ADVANCE OF THE WORK WITH THIS LOAN?

On the Limited 203k loan, the contractor can request 50% of the total bid amount at the close of the loan. The contractor receives the other 50% upon final inspection of the completed work.

SINCE MY CONTRACTOR WOULD ONLY BE COMPLETING COSMETIC REPAIRS, MY APPRAISED VALUE MAY NOT REFLECT ADDED VALUE. IN THIS CASE, WOULD I HAVE TO COME IN WITH MONEY OUT OF POCKET TO COVER THE COST OF THE REPAIRS?

Very often, you will see dollar-for-dollar value reflected on your appraisal. In the event that your appraisal does not reflect dollar-for-dollar value on your repairs, FHA allows you to take the appraised value and multiply it by 110% to determine your maximum loan amount. This allows room in the loan for repairs that do not add dollar-for-dollar value.

Your home, your way. That’s the FAIR WAY

Get Your FHA Loan Quote Now!