The question of what the FHA 203(k) renovation loan can and cannot be used for is pretty easy to answer. And we hear it a lot. In fact we often get asked, "Can I remodel my kitchen with this loan?"
Yes you can! With the 203(k) loan, you can remove walls, install new flooring and buy a new dishwasher to match your new refrigerator and stove. On the flip side, you can't use the loan to build an outdoor barbecue pit, add a swimming pool or construct a tennis court.
With an FHA 203(k) loan, you can buy a home at a very reasonable price in a desirable neighborhood, and remodel it to reflect your tastes and personality. The loan is unique because you can can borrow the funds needed to buy the property AND the funds you'll need for upgrades and home improvements. One loan takes care of both!
Let's take a look at the type of projects you can finance with the FHA 203(k) loan.
- Roof repair
- Roof replacement
- Replacement windows
- New doors
- Kitchen remodel
- Bathroom remodel
- Room additions
- Add a second story to a ranch style home (no kidding!)
- Waterproof a basement
- Solve lead-based paint issues
- Re-paint a house (inside and exterior)
- Furnace and A/C replacement
- Electrical system repair
- Plumbing system repair/replacement
- New floors - carpet, tile, laminate flooring, linoleum
- Kitchen appliances
- Driveway repair
- Sidewalk repair
- Grading issues in your yard to solve basement flooding problems
- Well & septic repair or replacement
- More - get creative and ask us if something is covered!
As you can see, there's a lot the FHA 203(k) can be used for when it comes to home improvements, renovations, repairs, remodeling and upgrades. So if you're wanting to get some work done around your house, you could consider the 203(k) as a "refinance and remodel" option. Or if you're in the market for a new home and you want to find the perfect one, maybe it's time to find a good structure and make it your dream home with the FHA 203(k).*
Learn more about this home improvement financing option to decide whether it's right for you by downloading our "Ultimate Guide to Renovation Loans." Get your copy at the button below.
*Amerifirst is ranked as one of the top twenty FHA 203(k) lenders in the nation for 2019 by the Department of Housing & Urban Development.