FHA 203k mortgages are essentially a regular FHA mortgage. However, they have a special component which is an escrow account that allows the customer to be able to purchase or refinance a property and rehabilitate or renovate that said property. This little piece that’s attached to the loan allows the customer to be able to do awesome projects! Things as simple as re-carpeting, tiling, painting, simple cosmetic repairs, and all the way to dealing with full-scale rehabilitation projects. This includes, but is not limited to, adding square footage, putting a second floor on a rancher, and taking a home down to the foundation and basically starting new. All of these things are allowed using the FHA 203k program.
With the current environment and the amount of inventory that is out there, a lot of properties, if not really all, have some sort of rehab that needs to be done. We tell customers all the time, if you’re looking to buy a home, there’s no reason not to at least look at 203k as an option because there really is no move-in ready home. Move-in ready homes are called new construction or are homes that have already been completely renovated. Still, that newly renovated home is not your creation, it’s the creation of someone else. The FHA 203k program allows for you to be able to completely, 100%, design the home the way you want it, which is what the 203k was designed for!
The two flavors are a Streamline 203k, and the standard, or Full 203k. They are very different programs.
The Renovation Lending Division of AnnieMac Home Mortgage is a specialized group of professionals focused on the need to help rebuild and renovate American homes. Americans currently have a great need to access affordable loans to simultaneously finance and renovate their homes.
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