What are the advantages of an FHA 203(k) loan?

What are the advantages of an FHA 203(k) loan?

The FHA 203(k) loan offers several advantages, including low down payment requirements, the ability to finance renovations, and flexible credit score criteria.

Can you explain how the down payment works?

Sure! With an FHA 203(k) loan, the down payment can be as low as 3.5% of the total loan amount, which includes both the purchase price and renovation costs.

Are there any specific eligibility requirements?

Yes, borrowers must meet certain eligibility criteria, such as having a steady income, a minimum credit score of 500, and the property must be a primary residence.

What types of renovations can I finance?

You can finance a wide range of renovations, including structural repairs, kitchen and bathroom remodels, and even energy-efficient upgrades.

Is there a limit on how much I can borrow?

Yes, the maximum loan amount varies by location and is based on the median home prices in your area, but it generally ranges from $331,000 to $1,000,000.