A 203(k) Project

If you’re looking for a qualified and approved 203k contractor in your area experienced in remodeling and the 203k loan process, then look no further than America’s Construction Experts.

The FHA’s streamlined 203k program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve or upgrade their home. Homebuyers and homeowners can quickly and easily tap into cash to pay for property repairs or improvements.

Our Approach

We take great pride in listening to your ideas, incorporating them into the project and customizing it just the way you want while continuing to keep your budget in mind.

Find out more about the Streamlined 203(k) program by reading Mortgagee Letter 2005-50, Enhancements to the “Streamlined (K)” Limited Repair Program. 

203k FAQ

What is the FHA?

The Federal Housing Authority (FHA) was established in 1934 to improve ownership opportunities for all Americans and has financed over 40 million homes since that time. FHA insured loans continue to be popular today as more and more Americans become aware of the benefits of this powerful government backed program.

What is an FHA 203(k) Loan?

The FHA 203(k) Renovation Loan Program provides funds for both the purchase and renovation of a home all under one mortgage loan.

What are the various types of FHA 203(k) Loans?

There are only two types of FHA Loans: 1. The Streamline 203(k) Loan is designed for projects with renovations costs that are less than $35,000. These projects normally are not nearly as extensive and don’t require a consultant or architect. 2. The Standard 203(k) Loan is for projects that have renovations costs exceeding $35,000. They are normally more complicated projects that involve structural changes, exterior landscaping, or major renovations. The Standard 203(k) is also used if your project requires architectural exhibits.

How is the home required to be appraised?

The appraiser is provided a copy of the General Contractors bid documents so that he can identify the construction work being completed along with their costs. The appraiser will then determine the value of the property after the repairs have been completed. This appraisal will then help determine the approved loan amount on the property.

Can a 203(k) Loan be used to purchase a HUD owned home?

A 203(k) Loan can be used to purchase any HUD owned property that has been determined to be eligible for the 203(k) Loan Program.

Can an Energy Efficient Mortgage (EEM) be used in conjunction with the 203(k) Loan?

The FHA does allow the use of an EEM for up to 5% of the value of the property for funds required over the FHA loan limits and the buyers approved loan amount for improvements. The only stipulation is that these improvements must increase the energy efficiency and lower the utility costs of the home.

Is a borrower allowed to do the rehabilitation work?

The buyer must demonstrate professional expertise in a given activity in order for them to do any rehabilitation work. However, the borrower cannot be paid for any labor, only materials used. The work right up must still show the overall cost of the repairs required in case the homeowner is unable to perform the work.

Is the 203(k) Loan Program available to investors?

No. The borrower must occupy the property. The 203(k) Loan can be used to purchase up to a 4 unit building as long as the borrower will be occupying 1 of the units.

What if there are extra funds available after the renovation is completed?

Any funds remaining after the completion of the renovation process can be used for additional improvements to the property. If not used for additional improvements, the funds will be applied towards paying down the loan principal.

Is there a time limit for the renovation work to be completed?

The construction work must begin within 30 days of the closing of the loan and must be completed within the established time frame. The total time for renovation must be completed within 6 months. There are instances when these time frames cannot be met. In those instances it is necessary to file extensions with the bank describing the reason for the delays.