The objective of the 203(k) program is to promote and facilitate the restoration and preservation of the nation’s existing housing stock.
A common but incorrect myth about the 203(k) is that it’s for an ugly property in a bad neighborhood. Not true! The maximum loan amount is currently over $400,000 for a single family and over $700,000 for a four flat in some Illinois counties.
If you are considering any of the following, it’s worth seeing if a 203(k) can work for you:
- A property that is too small, but in an ideal location
- Adding on or building up an existing property
- Updating or replacement of siding, windows or roof
- Updating plumbing, electrical or HVAC
- The purchasee of two, three, or four flats
- Mixed-use properties
Home Inspection Pros, Inc. is your renovation consultant. Please read on and contact Dean for further information since every situation is unique.
HomeStyle® Renovation Loan
Another loan option is the HomeStyle® renovation loan, offered by Fannie Mae. There are a few ways a Homestyle® loan differs from an FHA 203(k) loan.
With a Homestyle® renovation loan from Fannie Mae:
- Loan limits are typical higher
- Investors are allowed in certain properties
- Second homes may qualify
- Luxury items are allowed
- No minimum repairs are required
Talk to your lender for more information about HomeStyle® loans.
Veteran Affairs Home Loans
Veteran Affairs (VA) provides support for Veterans, Service members and surviving spouses in home ownership. Housing-related benefits include home loans and other programs to assist with the purchase, build, repair, maintenance and retention of your home.
Learn more about VA Home Loans: