What is an FHA 203(k) Renovation Loan?
While the idea of purchasing a fixer-upper and transforming it into a dream home may seem like a great concept, the reality can be harsh once buyers realize the true cost of a home remodel. Unfortunately, many homeowners give up on the idea of creating their dream home one renovation at a time because they automatically assume they can’t afford it. That’s where an FHA 203(k) loan comes in.
If you plan to purchase a fixer-upper or need to make improvements to your existing home, an FHA 203(k) loan may be the perfect Renovation loan for you. By combining a construction loan with your home mortgage, an FHA 203(k) loan limits your loan closing costs because it’s just one loan and simplifies the home renovation process. FHA 203(k) loans are backed by the federal government, and are typically given to buyers who want to purchase a home and perform upgrades, repairs, remodel or customize to their needs and wants.
Pinnacle Capital Mortgage has a nationwide team of 203(k) specialists who are helping buyers just like you take advantage of the opportunities supported by this program, including:
Those interested in purchasing a fixer-upper home that’s in need of upgrades, repairs, or larger renovation projects, even if the home is being sold “as is”.
Renovation can include:
- Kitchens or bathrooms
- Room additions
- Basement finishing
- Energy upgrades
- Complete tear-down and rebuild
- Anything in between!