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Jacqueline Clarke's Blog

By Jacqueline Clarke | Mortgage Broker
or Lender in Winter Park, FL

Going Green and Other Improvements with the FHA 203K REHAB LOAN

The 203k Rehab Loan combines the total rehab and acquisition (purchase) costs into one loan and one monthly payment.   The repairs are done after closing.  Fixed or adjustable rate mortgages are available with 15 and 30 year terms.

There are two versions of the FHA 203K loan - Standard and Streamline.  The Standard covers more extensive renovations such as a room addition or kitchen makeover. This version is typically used with REOs or bank owned foreclosures because those properties usually have more deferred maintenance issues.  A 203k can also be used to purchase short sales too. 

While more complicated projects are usually done with the 203K Standard, the Streamline (203K-S) version is used for less extensive repairs.  The Streamline is ideal for one or two projects or to simply purchase appliances.

A borrower can also refinance into a 203k to make repairs on their current primary residence. 

Now that I explained the product, I want to share some facts about the 203K that are not commonly known.

You can use the 203K for landscaping:


In addition to doing typical repairs, you can also do:
  • landscaping
  • fencing
  • add a deck,
  • patch the lawn
  • adding irrigation
  • grading. 

Use the 203K to buy a property with a pool that needs repairs.

   As long as the repairs do not exceed $1,500.00, buyers can roll the cost the repairs into their loan.  A non working pool must be fixed regardless of the cost of the repairs.  If the costs exceeds $1500, then the borrower must put the difference in an escrow account prior to closing.  Buyers can add a pool screen or protective fence.

You can also use 203K to replace Chinese Drywall, fix termite damage, mold remediation and to correct code violations. 

The 203K for Energy Efficiency Improvements.   You can use the 203K to purchase solar panels, new windows, a new air conditione to name a few items.

This loan is wonderful product that allows potential homebuyers an opportunity to personalize their first home with a low fixed rate mortgage.

I am an FHA 203K Loan Specialist and welcome your questions and comments. 

Jacqueline Clarke
FHA 203K Rehab Loan Specialist
Freedom Mortgage Corp.
Orlando, FL 
Cell: 407-591-7693
Email: jacqueline.clarke@freedommortgage.com 


By Dana Lindberg,  Sat Nov 2 2013, 17:43
203k loan is designed to help home owners who are in need of financial help for home repairs, renovation, and even new purchase. It is a very good program however, getting it is not the easiest process. You have to team up with a great lender who is knowledgeable about it.

Dana Lindberg
CFS Mortgage - http://www.cfs203k.com

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