203k Renovation Mortgages

NJ Lenders Corp.

FHA 203k Renovation Mortgages Mortgage Loan Information For Borrowers Considering A Purchase Of A Home

FHA 203k Renovation Mortgage

• Low Down Payments: For 30-year fixed renovation loans, down payment requirements are as low as 3.5%. 
• Flexible Underwriting: Flexible FHA underwriting and credit guidelines 
• Potential for Home Value Appreciation: Potential increased value appreciation after home renovations are complete 
• More Possibility - You love the town, the neighborhood, the street- in fact you love everything about the house except ________. We can turn the negative into a positive with the FHA 203-K renovation loan product.

203K Renovation Mortgage FAQs

Which repairs qualify? 

• A 203K renovation mortgage is meant for properties in need of structural repairs. There are different types of renovation mortgages, depending on the necessary repairs. 
  • The FHA 203K covers patios, bathrooms, decks, kitchen remodels, plumbing, flooring, new siding, additions and expansions to the home such as a second story, as well as heating and cooling systems. This program does not cover “luxury” improvements.
  • A Streamlined 203K renovation loan is for non-structural repairs such as painting and new appliances.

What types of properties qualify? 

• One to four family homes that have been completed for at least a year, homes that have been torn down, as long as some of the existing foundation is still in place, and mobile homes that can be moved to a new location. Co-ops are not eligible, and condo eligibility will vary.

How much money will I receive? 

• The amount of money you may borrow under an 203k loan varies depending on the type of loan (regular vs. streamlined). FHA 203K loans allow an amount that is the lesser of these two amounts: 1) As-is value of the property plus repair costs, or 2) 110 percent of the after improved estimated value of the property including planned repairs.
• Streamlined 203K loans allow a loan of the purchase price of the home plus up to $35,000. The as-is value of the property or the estimated value of the property post-repair will be determined by an appraisal. The typical down-payment is as low as 3.5 percent, but the money can come from a family member, employer or charitable organization