HUD Approved FHA Loan
The Federal Housing Administration (FHA) 203k loan is a Department of Housing and Urban Development (HUD) approved FHA home loan. The Section 203k loan program is the Department’s primary program for the rehabilitation and repair of single-family properties. What makes this unique is that 203k loans include money for home repair and remodeling. A 203k loan is simply a FHA loan with that adds renovation or improvement costs to the loan.
The FHA, which is part of HUD, administers various single-family mortgage insurance programs. These programs operate through FHA-approved lending institutions, which submit applications to have the property appraised and have the buyer’s credit approved. These lenders fund the mortgage loans, which the Department insures. HUD does not make direct loans to help people buy homes.
Through the 203K loan program, renovations are completed after closing of Escrow by using a portion of the loan proceeds to cover improvement costs. Funds are held in a managed account with the mortgage company, earning you interest during the renovation period.
There are common uses for 203k Loans:
- Doors & Windows
- SQ Footage Additions
- Water Heaters
- Well & Septic
For more information on 203k Loans, please feel free to contact us or call: 888.927.3256.
Allied Mortgage Direct serving DE, NJ, PA, MD, DC, NY, NH for 203K loans.