Designed for home rehabilitation purposes, FHA 203K loans can help pay for your home renovations. These loans are available both as a refinance and purchase. Thus, you can borrow against the equity in your home for home improvement and you can also get a single mortgage to finance both purchase and renovation of the home.
FHA 203(k) Loans can be a great option for home buyers who can meet these requirements:
• Be able to prove that money was spent on renovating your home
• Prove a decent credit score (580 or above)
• List of improvements (some are not eligible for financing such as swimming pools)
If you meet these requirements, you may be able to qualify for an FHA 203(k) Loan.
To encourage revitalization of older Southern California neighborhoods or damaged homes, FHA provides two types of loans to help homebuyers reserve a portion of loan funds to accomplish non-structural and structural repairs.
A standard 203k loan is provided for properties with structural needs.
203(k) Eligible Repairs and Improvements include:
• Repair/Replacement of roofs, gutters and downspouts
• Repair/Replacement/Upgrade of existing HVAC, plumbing, and electrical systems
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Exterior and interior painting, including lead based paint stabilization or abatement
• Weatherization, including storm windows and doors, insulation, and weather stripping
• Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers, and microwaves.
• Improvements for accessibility for persons with disabilities.
• Repair, replacement or the addition of exterior decks, patios and porches.
• Basement waterproofing or remodeling which does not involve structural/sculptural repairs.
• Window and door replacement and exterior siding replacement.
• Well or septic system repair or replacement
Ineligible Repairs include:
A Limited 203(k) loan covers non-structural upgrades, such as painting, new counters, cabinets, patching holes, replacing doors, repair/installation of HVAC systems, and purchase/installation of new appliances.The maximum repair amount which can be financed using a Limited 203(k) loan is $35,000 with no minimum requirement for repairs.
Eligible SoCal properties for a 203(k) loan include:
• Attached / Detatched Single Family Residential properties
• 2-4 Unit Properties
• HUD-approved Condominiums
• Manufactured Housing
Before applying to receive a home renovation loan, decide as best you can regarding how much money you will need to begin your home renovation. If you hire a contractor, ask them to give you an estimate on the total cost of the home repairs. Once you have that specific number, discuss the possibility of a Orange County, San Diego County, or Los Angeles County home renovation loan with a mortgage broker. Different loans offer different amounts to borrowers, so talking to a mortgage broker can help determine the specific loan and amount that fits your project’s goals.
For any further questions about the types of home renovation loans we offer or if you qualify for an FHA 203(k) loan, Contact The Kolesar Team.
We cannot say enough about our real estate agent, Chris Fox, and Sean Stanfield with the Kolesar Team ! Their professionalism, caring nature, extensive knowledge, and ongoing communication was impressive. Throughout our home buying process, they were extremely patient and responsive, which helped make this experience enjoyable (and definitely not stressful)! The entire team is trustworthy, and we highly recommend them for your next real estate transaction!Kelli Bremonte Cardenas
This is my second loan in 6 months and the efficiency and patience with Tiffiney and Branden were fantastic as usual. I would use them again.Deanne Bourne
I had the best experience with The Kolesar Team ! We really had no clue how to even begin the loan process and they helped us through every step of the way. Thanks again team!Arielle Dumaw Whitman
I don’t normally make endorsements of other people’s companies, but when I do – I mean it! We are beginning our 5th deal with Brendan Kolesar and his Team of experts (with 2 more hopefully in the pipeline). I’ve spent a lifetime in this business, many of my old friends have either died or retired. This caused me to seek out new young blood to work with. It isn’t easy finding professionals that really understand their profession, all the related nuances, have excellent communication skills, provide outstanding service, and are more than competitive with rates and fees. I highly recommend Brendan and The Kolesar Team!Ron Martin
Brendan and the team are as good as it gets! I’ve done multiple transactions through them over the past 5 years now and I guarantee you will be happy you used them.Scott Brouse