The FHA 203k is offered by the Federal Housing Administration, via approved FHA lenders and allows homebuyers in Tampa to purchase a fixer-up property with as little as a 3.5% down payment. This mortgage program is different than the standard FHA 203b loan. The 203K allows home buyers to purchase a home without using their own cash for improvements, instead, homebuyers can finance repairs and improvements into the mortgage loan.
When considering using this incredible FHA 203K renovation loan, it’s important to know there are two versions: the “streamlined” version, and the “full” version. Which version you will need depends on the total dollar amount you need for improvements and repairs, and the type of repairs and upgrades you will be doing.
FHA Streamline 203k
FHA’s Streamlined 203(k) program permits Tampa buyers to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. Homebuyers and homeowners can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Homeowners can make property repairs, improvements, or prepare their home for sale. Homebuyers can make their new home move-in ready by remodeling the kitchen, painting the interior or purchasing new carpet
FHA Full 203k
The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be rebuilt as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one- to four-unit structure.
FHA 203k Basics
- The FHA 203k loan allows you to up finance 110% of your home’s “after repair value”
- You can qualify with as little as 3.5% down
- The FHA 203k loan can be used for owner-occupied 1-4 unit dwellings that have been completed for at least a year
- The FHA 203k loan can be used to purchase or refinance a home that does not need repairs to finance the cost of modernization
FHA 203k Benefits
- Create instant equity in your new home
- The borrower can receive gift funds from family for the down payment
- Non-occupying co-borrowers are allowed
- You can use the $100 down HUD program with the 203k rehab program
- The seller can still pay up to 6% toward closing costs and buy down costs
- Owner-occupied financing for up to 4-unit properties, PUD’s and condos
- Homebuyers can borrow up to 110% of the future appraised value
- Purchase homes that would not otherwise qualify for conventional financing
- Turn a fixer-upper project into your dream home
- Only one loan needed to purchase and renovate
- Low down payment required – 3.5% down
- Relaxed credit score requirements allowed – 620 min score
Homebuyers that want to learn more can contact Coast2Coast at ph: 904-810-2293 or just submit the Quick Request Form at the top of this page. We serve all homebuyers across the country, including Tampa, Hillsborough County