Need an FHA Home Loan? What is a 203(b) or 203(K)?

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Need an FHA Home Loan? What is a 203(b) or 203(K)?

FHA Federal Housing Administration LogoAre you ready to buy a home and need an FHA loan to purchase YOUR dream home in Bryan or College Station? Do you know which kind you need?

There are really only a couple major kinds of FHA loans used much anymore. The main loan that borrowers use is called an FHA 203(b). This loan offers a low down payment and flexible qualifiying guidelines that are typically the easiest for borrowers to obtain.

The other type FHA loan is a 203(k) Rehabilitation Loan. When a 203(k) loan is used it allows a homebuyer to finance both a purchase money and fixup money into one single loan. What happens is that some of the loan received pays the seller and the rest is placed in an escrow account and then released as the rehab is finished.

To get an FHA 203(k) loan:

  • The home must be at least one year old
  • Buyer 203(b) eligibility requirements must be met.
  • Total property value (including the cost of repairs) must fall within the FHA maximum mortgage limit for the area.

Want more information about an FHA 203(b) or FHA 203(k)? Let us know! We’ll be glad to answer your questions and direct you to a qualified lender.

Susan Hilton – Realtor & Sales Trainer for Century 21 Beal

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2 Comments

  1. it…. 🙂

    Thats quite a cliffhanger Susan