203(k) Loans
203(k) Loans
203(k) loans combine the financing for a home’s purchase and remodeling or repairs into a single loan.
The Lowdown on 203(K) Loans...
Why a 203(K) Loan?
The main benefit of these loans is that they give you the ability to buy a home in need of repairs that you might not otherwise have been able to afford to buy. Plus, the down payment requirements are minimal, and often you get decent interest rates.
Our 203(k) Loan Rates Are Low & Our Process Quick & Painless
An FHA 203(k) loan is a loan backed by the federal government and given to buyers who want to buy a damaged or older home and do repairs on it. Here’s how it works: Let’s say you want to buy a home that needs a brand-new bathroom and kitchen. An FHA 203(k) lender would then give you the money to buy (or refinance) the house plus the money to do the necessary renovations to the kitchen and bathroom.
Often the loan will also include: 1) an up to 20% contingency reserve so that you will have the funds to complete the remodel in the event it ends up costing more than the estimates suggested and/or 2) a provision that gives you up to about six months of mortgage payments so you can live elsewhere while you’re remodeling, but still pay the mortgage payments on the new home.
We’re here to make the 203(k) home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our FREE 203K Loan Qualifier.
We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you whether you’re a first-time home buyer or a seasoned investor.
The 203(k) Loan Process
Here’s how our home loan process works:
Complete our simple 203K Loan Qualifier
Receive options based on your unique criteria and scenario
Compare mortgage interest rates and terms
Choose the offer that best fits your needs
One loan for both the home purchase and renovations
Lower credit score requirement
Low minimum down payment requirement
Potentially lower interest rates compared to credit cards or home improvement loans
Can finance up to six months of mortgage payments if living elsewhere during renovations
Must plan to live in the home during or after renovation, for at least one year
FHA mortgage insurance payments required
-Victoria C.
“Working with Ryan was a wonderful experience. He made himself readily available for any questions and was so helpful. Could not had made our recent townhome purchase without him. Would recommend him without reservations for your home finance needs”
-Lucila R.
“We decide to ask a question about what we needed to fix in our credit in order for us to get a house. We contacted Ryan and right away he called us and give us some advise in lest the 3 days he got an answer. We are so excited becuase we do not need to wait 2 years for us to buy a house. We can do it now. Thanks Ryan at ohanamortgage is helping us make our dream come true..”
