What you need to know about FHA203k

There are two main types of FHA 203(k) loans:Standard 203(k) Loan: This is for more extensive renovations and repairs, including structural changes and repairs that exceed $35,000. The loan amount is based on the projected value of the property after the renovations.Limited 203(k) Loan: This is for less extensive renovations and repairs, typically costing less than $35,000. It's often used for cosmetic improvements, such as updating kitchens or bathrooms.Some key points about FHA 203(k) loans:They require a down payment of at least 3.5%.The property being renovated must be a primary residence.Borrowers must work with an FHA-approved 203(k) consultant.There are specific eligibility requirements and guidelines for the types of renovations and repairs that can be financed.Overall, FHA 203(k) loans can be a helpful option for buyers and homeowners looking to finance home improvements, but it's essential to understand the requirements and limitations of the program before applying.Tune in and learn https://www.ddamortgage.com/blogDidier Malagies nmls#212566DDA Mortgage nmls#324329 Support the show