What is a 203K loan?
This loan permits home buyers to finance repair/home improvement money into their mortgage to repair, improve or upgrade their house. With this loan option, home buyers can quickly and easily tap into cash to pay for property repairs or improvements.
Who should get a 203K loan?
If your monthly housing costs meet a specified percentage of your gross monthly income (29% ratio), if you have enough income to pay your new housing costs plus all additional monthly debt (41% ratio), and at least a 620 FICO credit score.
What are the pros and cons of 203K home loans?
- It improves the real estate market because it requires a home to be improved
- Overall real estate values are increased
- Rates may still be lower than you can find without FHA backing
- Loans are guaranteed so lenders have less risk
- Interest rates on 203k loans are a little higher than other FHA loans
- Lenders have to do extra work to track your project and lock an interest rate
- Only for improvements that cost at least $5,000, and completed within 6 months
Why Trust Providential?
We’ll save you more money and will offer you low interest rates compared to the competition. If you apply for a 203K home loan, you can save cash on your home loan and closing fees.
Providential has helped tens of thousands of borrowers find the perfect home loan option for them. Apply online today!
Other Loan Options:
- 30 Year Fixed Rate Mortgage
- 15 Year Fixed Rate Mortgage
- Jumbo Mortgages
- Reverse Mortgages
- FHA Loans
- Adjustable Rate Mortgages
- VA Home Loans
- Interest-Only Home Loans
- USDA Loans
- HELOC Loans