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Oklahoma FHA 203K Renovation Loan
You Can Purchase a House in Need of Repair or Modernization
How The Loan Process Works: FHA 203k Mortgages
- One of our expert mortgage lenders pre-approves you for a 203k FHA loan based on income, assets, debt and credit.
- You select a property.
- You meet with a consultant at the property for an inspection and feasibility study.
- You acquire contractor bid(s) and compare figures with the consultant.
- The consultant prepares a write-up for the work to be done.
- An appraisal is performed “as-completed” upon having an executed contract.
- All paperwork is completed and submitted to underwriting.
- Underwriter approves the FHA 203k renovation loan.
- The approved FHA 203k rehab loan is sent to the title company.
- The FHA 203k rehab loan closes and a rehab account is created.
- Funds are disbursed as work is completed and inspected.
- The rehab is complete!
Items NOT Allowed For an FHA 203k Renovation Loan
Any luxury item and/or improvement that does not become a permanent part of the subject property is not eligible, including:
- Recreational or luxury improvements, such as pools, hot tubs, whirlpool baths.
- Barbecue pits, bath houses, tennis courts, satellite dishes or tree surgery.
- Additions or alterations to support commercial use or to equip or refurbish.
Advantages of an FHA 203 Renovation Loan
- FHA allows repair/renovation costs to be rolled into the loan.
- Major items ARE allowed (such as foundation work).
- Low down payment (3.5%) and seller can pay up to 6% towards closing costs.
- Close before repair/rehab begins.
- Only one closing. Money disbursed on a draw basis after closing as construction is completed.
- Loan amount can go up to 110% of the “after-improved value” from the appraisal.
- Buyer can include optional renovations/upgrades
Repair & Renovation Examples
- Repair Foundation
- Replace Roof
- Paint Interior & Exterior
- Install New Flooring
- Remodel Kitchen/Bath
- Upgrade to Central Heat/Air
- Repair Termite or Moisture Damage
- Energy Eﬃciency Improvements
- Landscaping/Exterior Repairs
- New Built-in Appliances
- And More!