Home Buying Tips
FHA Rehab Loans (Fixer-Upper Financing)
An FHA rehab loan (203(k)) lets borrowers finance both the purchase or refinance of a home and the cost of repairs in one mortgage. The standard 203(k) covers major renovations; the limited 203(k) covers smaller projects. Kathryn Cole connects buyers with lenders experienced in 203(k) financing.
Published March 11, 2024
What is an FHA rehab loan?
An FHA rehab loan, commonly called a 203(k) loan, allows you to roll renovation costs into your mortgage. There are two types: the standard 203(k) for major work and the limited 203(k) for smaller repairs up to a capped amount.
When does a fixer-upper make sense?
Fixer-uppers can work when you have a clear renovation budget, contractor quotes, and a lender who understands 203(k) requirements. Kathryn Cole helps buyers evaluate condition, after-repair value, and timeline before writing an offer.
FAQ
FHA Rehab Loans (Fixer-Upper Financing): FAQ
- Can I use an FHA 203(k) loan in Springfield, MO?
- Yes, FHA 203(k) loans are available in Missouri for eligible borrowers and properties. You need an FHA-approved lender and approved contractors for the work. Kathryn Cole can refer you to local lenders familiar with the program.