What is an FHA 203(k) rehab loan? – The Money Alert – THe FHA 203(k) rehabilitation loan can help finance properties that are in need of repair. Here is a look at what is an FHA 203(k) rehab loan.
An FHA 203k loan allows you to borrow money, using only one loan, for both home improvement and a home purchase. These loans can also be used just for home improvements, but there might be better options available. 203k loans are guaranteed by the FHA, which means lenders take less risk when offering this loan.
Topics: 203k Loan. There are significant advantages to securing a 203(k) loan, which is backed by the government agency Federal Housing Administration (FHA), for those looking to purchase a property requiring renovations.
At NerdWallet, we adhere to strict standards of editorial integrity to help you make decisions with confidence. Many or all of the products featured here are from our partners. Here’s how we make.
The FHA 203k Loan is a type of government insured mortgage program that allows homebuyers and owners the ability to finance renovation costs through a single home loan during a purchase or refinance.
What is a 203k loan and How Does it Work? – The 203k program may be able to finance the work. A home that must be moved from its current location. For example, let’s say your dream house is in danger of being demolished to make way for a new interstate highway. In such a case, you may be able to get a 203k loan to move the home to a location of your choosing and recondition it to your needs.