FHA 203K Rehabilitation/Home Improvement Loans

The FHA 203k loan allows you to finance repairs and home improvements into the loan it is the agency's specialized home construction loan.

The 203K loan is available to both buyers and those seeking to refinance their existing home to make repairs or improvements. The 203k loan combines the traditional "home improvement" loan with a standard FHA mortgage, allowing mortgage borrowers to borrow their costs of construction.

The 203k loan comes in two varieties.

The first type of 203k loan is the Streamlined 203k. The Streamlined 203k loan is for less extensive projects and costs are limited to $35,000 with no minimum. The other 203k loan type is the Full 203k loan.

The Full 203k loan is meant for major rehab projects requiring structural repairs, room additions, replacing plumbing, or anything else which may prohibit you from living in the home for more than    30 days while construction is underway.  There is a minimum of $5,000 in repairs for the Full K loan.

FHA states that there are three ways you can use this program:

1. You can use the FHA 203k loan to purchase a home on a plot of land, and then repair it.
2. You can use the FHA 203k loan to purchase a home on another plot of land, move it to a new plot of land, and then repair it.
3. You can use the FHA 203k loan to refinance an existing home, and then repair it or make improvements.

All proceeds from the mortgage must be spent on home improvements. The 203k mortgage may only be used on single-family homes; or homes of fewer than 4 units and is available for homes which will be owner-occupied only. 

Please contact your Nebraska Mortgage Expert for more details on this program to see if it would be a good fit for what you are looking to do.