Typically, a loan that includes funds for improvements in a residential property, such as additions and alterations, maintenance and repair, or replacement of structural parts, These include:
Escrow Holdback
- Ensures improvements up to $5,000 can be made after closing
203K Streamlined Loans
- Allows your buyers to finance repairs or remodels at closing
- Up to $35,000 for renovations and repairs
- Financing based upon improved value rather than present value
- Single loan with one closing
- Down payment as low as 3.5%
- Variety of repairs are allowable
- Limited number of contractors allowed
- Mortgage insurance for term of loan
FHA 203K
- For more extensive renovations
- FHA inspector must be involved
- Only one contractor allowed
Conventional Loan
- Similar to Construction to Permanent Loan
- 10% down payment with good credit score
- Remodels and additions are allowed
- Mortgage insurance can be eliminated
