One loan instead of two
An FHA 203(k) loan rolls the price of a home and the cost of repairing it into one mortgage. It is how buyers take on the house with the dated kitchen and the tired roof without needing a second loan.
Limited and standard
The limited 203(k) covers smaller, non-structural work: flooring, cabinets, appliances, a roof, paint. The standard 203(k) covers larger projects, including structural work, and uses a HUD consultant to oversee the scope.
What it will not pay for
Luxury items are generally excluded, such as a new swimming pool or outdoor kitchen. The program is built for making a home safe, sound and livable.
What to line up first
A licensed contractor and a written bid. The loan is sized from that bid and the appraiser's estimate of the finished value, so getting it early is the biggest time-saver in the whole process.
Related: FHA 203(k) rehab loans and mortgages in Coral Springs, FL.