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Financing Huntsville AL Homes: What is an FHA 203(k) Rehab Loan?

By: Huntsville Real Estate Expert Mike Manosky On February 28, 2012

Have you ever heard of the203k rehab loans offered through the Federal Housing Administration (FHA)?  If you’re rehabbing Huntsville AL homes, it might be just the loan you need.

What is a 203(k) Loan?

The FHA developed the 203(k) program to help revitalize homes throughout the country.  This program provides insured loans that can be used to rehab, rebuild or modernize existing Huntsville AL homes.

What are the Benefits of a 203(k) Loan?

This is a one-stop loan, which means one loan finances both the purchase and rehabilitation of your property.

The mortgage amount is based on the projected value of the property after the work has been completed.  The mortgage takes into account the cost of the rehab including labor charges, permits, drawings, etc.  The mortgage can’t exceed 110% of the “As Repaired Value.”

FHA approved lenders can offer this program and it can be combined with other approved programs.

Who is Eligible for a 203(k) Loan?

This program is open to individuals as well as non-profit organizations.

What Properties are Eligible for 203(k) Loans?

The 203k loan can be used to purchase and rehab one- to four-family dwellings that have been completed for at least one year.  For all the additional eligibility requirements, carefully review the “Eligible Property” section on the web page about 203(k) loans.

If you’re looking at Huntsville AL homes to buy, whether you’re using an FHA loan or not, I can help.  Give me a call today at 256-508-0211 Direct or 800-803-0053 Toll Free or email me at mike@movetohuntsville.com.

Having lived in the Huntsville AL area for most of his life, Mike Manosky understands exactly what makes this community special.  In fact, those who know him well will tell you he carries the same traditional values and focus on the future as Huntsville.

Mike brings with him a keen eye for the details of buying or selling a Huntsville AL home and seemingly boundless determination and energy, which is why his clients benefit from his unique brand of real estate service. Rooted in Tradition, Focused on the Future – Mike Manosky will help make the most of your Huntsville AL real estate experience. Give him a call today, 256-508-0211 Direct or 800-803-0053 Toll Free, and discover the difference he can make during your family’s move.

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