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FHA 203(k) Rehab Loan

Have you found a neglected property or foreclosure you'd like to buy but it needs repairs? Perhaps it isn't even habitable? If yes, our FHA 203k rehab loan is designed just for you. By combining the puchase price plus estimated cost of repairs into the loan amount, you can get that fixer-upper and have the funds you need for repairs up front.

Consider an FHA 203(k) Rehab Loan When

If you have any of these needs, an FHA 203(k) rehab loan may be right for you.

FHA Rehab Loan Process

The process of obtaining an FHA 203k rehab loan anywhere in Florida is as follows:

  1. If purchasing, getting pre-approved for an FHA 203k rehab loan is free and can be done over the phone. We'll provide you with a letter of pre-approval that you can give your realtorTM and sellers.
  2. Find a fixer-upper and do a feasibility analysis of the property with your realtorTM. If you and your agent agree on the feasibility, execute a sales contract. The contract should state that you are seeking an FHA 203(k) loan and is contingent on loan approval based on any additional repairs required by FHA and/or the lender.
  3. If refinancing and using an FHA 203k for home improvements, contact us directly and we'll help you with the feasibility analysis
  4. Obtain detailed plans and specifications for the rehab and provide them to us.
  5. An appraisal will be done by a licensed appraiser to determine the value of the property after rehabilitation
  6. The loan will be set to close for an amount that covering the purchase or refinance cost of the property and allowable closing costs. The loan amount will also include a contingency reserve of 10% to 20% of the total remodeling costs and is used to cover any extra work not included in the original proposal.
  7. At closing, existing liens are paid off and the remaining funds put in an escrow account to pay for repairs and improvements during the rehabilitation period.
  8. Payments and remodeling begin after closing. You can have up to 6 payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but cannot exceed the time estimated to complete the rehab.
  9. Escrowed funds are released to the contractor through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after we determine their will be no liens on the property.

Streamline FHA 203k rehab loan

For repairs less than $30,000, we offer a streamlined FHA 203k rehab loan that takes much of the paperwork out of the process.

Learn More

To learn more about FHA 203k rehab loans and our many other rehab loans, contact one of our loan officers.