203k Consultant | What You Can Do With A 203K Loan
The 203K home improvement loan is considered an easy loan to acquire, which is backed by the Federal Housing Administration (FHA). The FHA categorizes 203K as a ‘home construction’ loan, which combines standard mortgage and home improvement loans. This allows the borrower to buy, as well as improve the property if they meet the eligibility requirements.
Our 203K consultants at Beryl Engineering & Inspection often get asked about the types of activities borrowers can engage if they acquire this type of loan. Here, we have listed the purpose of the loan, as well as the activities, that can be funded using this option.
Purpose of Loan
The FHA has clearly outlined the three primary purposes for acquiring the 203K loan:
- To purchase and then repair property or plot;
- To purchase property or plot, move in, and repair it; and/or
- To refinance the mortgage on an existing home and repair it.
It must be noted that all the funds received from a 203K loan must be used in purchase and home improvement, and not for other purposes. In addition, this loan program is allowed for single family and 4-unit homes.
Types of Activities
The repair work required will determine whether you get the 203K loan or the Streamlined 203K loan, which has more flexible requirements as compared to the standard loan program. The types of activities you can finance using this loan option includes repairs such as:
- Relocating load-bearing walls.
- Remodeling the home to add new rooms.
- Landscaping the property.
- Structural repair to make it up to standards.
- Necessary, recommended, and desired repairs that exceed the amount of $35,000.
For other types of repairs, such as in the HVAC systems, roof, and improvements in accessibility and minor remodeling work can be financed using Streamlined 203K loan. To learn more, get in touch with us today as we are one of the leading 203K consultants in the Greater Tampa Bay Area.