FHA 203k Home Improvement Loans

FHA 203k Home Improvement Loans in Michigan

Have you found your dream home but it’s in need of repair? An FHA 203k home improvement loan is a loan backed by the federal government and given to home buyers who want to buy a damaged or older home and do repairs on it. According to HUD a 203k loan “enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.” There are two types of 203k loans: Limited and Standard.

Not all mortgage brokers in Michigan offer FHA 203k rehabilitation loans. Locked-IN Lending, LLC is different from other brokers in many ways, including the fact that we do offer our customers the ability to obtain a 203k home improvement loan mortgage. Whether you’re buying a damaged or older home in Macomb County or Oakland County, we can help you buy it. We will find you the lowest down payment, lowest rate, or lowest mortgage payment available.

FHA 203k Rehab Loan Pros

• Great for buying a fixer upper
• Allows for financing of $35,000 in remodel costs
• Only 3.5% down payment
• Can help build equity fast

FHA 203k Rehab Loan Cons

• No DIY, you MUST hire a pro contractor
• Tends to take longer to close
• Not available from all lenders
• More paperwork than typical mortgages

How the FHA 203k Rehab Process Works

1. Apply for the 203k loan
2. Get approved
3. Find a licensed contractor
4. Get bids
5. Close on the loan
6. Complete promised repairs
7. Move in!