A 203k loan is a type of mortgage that can be used to finance both the purchase of a house and the home improvement costs that come with it. It’s ideal for buying a fixer-upper or making repairs on a home you already own.
What is an FHA 203k mortgage loan?
A 203k is a type of FHA mortgage that can help consumers buy and renovate properties with a single loan (and single monthly mortgage payment).
The basic premise of an FHA 203k loan is this:
You buy or refinance a home and roll your renovation costs into the loan balance. You then pay off those costs — of both the home improvements and the property itself — overtime via a single monthly mortgage payment.
Types of 203k loans
There are two types of 203k loan products you can choose from: the Limited 203k (previously called the Streamline 203k) and the Standard 203k. As the names suggest, the Limited 203k is a smaller-scale loan that offers faster processing, less paperwork, and less in financing. The Standard 203k is designed for larger-scale projects and more expensive renovations.
FHA 203k eligibility requirements
Because 203k loans are insured through the Federal Housing Administration, the loan program has less strict qualifying requirements than other mortgage loan options. The loan has one of the lowest credit score requirements of all loans as well as a minimal down payment.
We liked knowing upfront what was needed and being able to use the internet to apply online. Everyone was very helpful and knowledgeable. It was a good experience and would greatly recommend others.
Allen B. , Kerr McGee Oil & Gas Corp
Sue Took the time to explain and lead me through the process. They never treated my questions as silly… As a single mom, I appreciated dealing with other women – ones that understand what it was like trying to do this with a 2 and 3-year-old! Thank you for making it painless. Thank you!!
Rachel S. , Single Mom
Sue took care to explain the process and details to me, the wife, of purchasing our new home.
Darlene F. , Homemaker
I have a heavy work schedule that Sue accommodated by coming to my office to answer questions and assist in filling out forms. She also attended the closing. Good Job!
Harry C. , El Paso Corp.
Sue was recommended by my Realtor. Provided friendly and courteous service. Enjoyed working with Sue!!
Dawn F. , Chevron Texaco
Your company has great people and friendly service. You will get all of my mortgage business!
Bradley S. , Texas Barcode Systems
Locked me into a very favorable rate on the first day of the contract! Was persistent on my behalf in providing the requisite financials to the underwriter.
Raymond F. , Retired
The prompt response to my application was great.
Judy R. , Homemaker
Sue was wonderful to work with! She made herself available to us at any time. Being first time home buyers, this was very helpful. keep up the good work.
You all are great – Thanks!
Thomas G. , Attorney at Law
Sue worked the hours to be sure that we could close at the earliest possible time. She stood by her good faith estimate.
Jayne L. , Homemaker
Awesome customer service!
Just a note to tell you how much Sandy and I appreciate your efforts to get our home refinanced. As we approach retirement age, getting our home paid for in a timely manner means so much to us.
Sam T. , First Nat. Bank of Eagle Lake
No surprises. Estimates were very accurate and we closed in a very short period of time. Very pleased with the process.
Kenneth R, El Paso Energy
Exceptional, friendly, prompt, and professional service. Kept us very well informed. Answered all our questions. Made our home refinancing painless. We have never received such excellent care.
Lovella & Don E.
She indicated that my closing costs with Cornerstone would be lower than the competition and it was. She called regularly to assure me that I was getting the best interest rate. And Sue was available at closing to answer any and all questions I had regarding my closing package. Sue was Great!
Salvatore M. , AES New Energy
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This simple qualifying step helps us determine what sort of loan options you are eligible for and provide you with the right options.
You will then be matched with a home loan expert to help define your goals and choose the right plan of action for your situation.
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We’ll be there with you every step of the way to finalize refinancing or obtaining purchasing power for your new home.
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