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THE NATION'S LARGEST RENOVATION LENDER

Learn more about Renovation Loans.

*For 203(k) purchase transactions the maximum loan amount is the lesser of the sales price + renovation costs or 110% of the after improved value, times the maximum loan-to-value.  For refinance transactions the maximum loan amount is the lesser of the property value before renovation + renovation costs or 110% of the after improved value, times the maximum loan-to-value. Loan amount must be within FHA county loan limits.For HomeStyle® purchase transactions the maximum loan amount is based on the lesser of the sales price + renovation costs or 100% of the as-completed value, times the maximum loan-to-value allowable. For refinance transactions the maximum loan amount is based on the lesser of 1) 100% of the as-completed value times the maximum loan-to-value or 2) the balance on the existing loan plus the renovation cost plus the settlement costs. The maximum repair amount is limited to 50% of the as-completed value. HomeStyle® is a registered trademark of Fannie Mae.

Buy a "Fixer-upper" or REO property needing renovation

Get funds to both purchase and upgrade your dream home

Refinance and renovate your existing home

Renovation financing to turn your house into your dream home

FHA's 203(k) loan program is designed to finance the purchase and renovation of your home, all in one loan.

How Does it Work?

Is a 203(k) Loan Right for You?

Who Qualifies?

Meet with your mortgage loan originator to discuss a renovation loan

We will go over a loan application and will review documentation that supports your application to determine the amount you will be approved for. We will discuss your different loan options and determine the best loan program to fit your needs.

Your purchase contract is accepted by the seller

Your Real Estate Agent will forward the accepted contract to your mortgage loan originator to set up your financing file. This is when the clock starts ticking. You will need to get with your contractor and/or your FHA consultant to finalize the estimate and scope of work to be done. Any other required or desired inspections, such as a home inspection, termite inspection, well or septic inspections, roof inspection or HVAC inspections, will be ordered at this time.

Choose your contractor and obtain bids

You must research and select contractors with whom you will feel comfortable. Contractors must provide specific documentation as previously listed to be accepted for use in the renovation program. You will need to provide a complete contractor package for each contractor completing work on this project.

Insurance

In most cases, a homeowners policy will suffice. On some occasions a builders policy will be required. An insurance agent can provide guidance here.

Once all conditions to the loan have been met, the loan will close

At closing the seller and Real Estate Agents are paid in full. The funds for the repairs are placed in an escrow account. If mortgage payments are included in the escrow, the payments will be paid when they are due. Repairs must start within 30 days of closing and be completed within six months.

Renovation Loan Basics

What Is a Renovation Loan?

A renovation loan such as an FHA 203(k) or a FannieMae HomeStyle® loan lets you purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the lower of the projected market value following repairs or purchase price plus renovation costs.*

Check Out the Benefits of a 203(k) Loan

203(k) Renovation Guidelines

What Is the Difference Between a Limited K and a Consultant K Loan?

The renovation can be completed under either a Limited K loan or a Consultant K program. Choosing which loan suits you best will depend on the amount and type of improvements your property needs.

Limited K vs Consultant K

Real Stories

Always answered all our questions very promptly with return calls and email! Very good at explaining things throughout the process. The speed of closing our 203k loan was outstanding.  Overall service was phenomenal! Highly recommended to all! — Brett M. 

Communication 100%, processed all paper work on time and was very directive to my buyer of his expectations in order for this 203k loan to close. Very knowledgeable and experienced. He was amazing.!” — Carmel S.

Dave Stemrich was our mortgage officer and he did an AWESOME job! He worked really hard to get us what we wanted and he did exactly what he said he was going to do. He went the extra mile to get us what we needed. We really appreciate him! He always kept us informed on what was going on and if we had any questions he was also more than happy to answer them!” — Natalie M.

As seen on:

Loan inquiries and applications in states where I am not licensed will be referred to a Loan Officer who is licensed in the property state.  Equal Housing Lender.  Prospect Mortgage is located at 15301 Ventura Blvd., Suite D300, Sherman Oaks, CA  91403, 800-464-2484.  Prospect Mortgage, LLC, NMLS ID #3296, (www.nmlsconsumeraccess.org) is a Delaware limited liability company licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act and operates with the following licenses: AZ Mortgage Banker License #BK0903027;  Georgia Residential Mortgage Licensee #16984; Illinois Residential Mortgage Licensee; MA Mortgage Lender/Broker License #MC3296; MS Licensed Mortgage Co.; Licensed by the NH Banking Dept.; Licensed by the NJ Dept. of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services, 711 Westchester Avenue, Suite 304, White Plains, NY 10604; RI Licensed Lender, RI Licensed Loan Broker; In Texas, located at 8650 Freeport Parkway, Suite 130, Irving, TX 75063.  This is not an offer for extension of credit or a commitment to lend.  Loans are currently being closed and committed at the expressed rates, however these rates may change or may not be available at the time of your loan lock-in, commitment or closing.  All loans must satisfy company underwriting guidelines, interest rates and APRs are based on recent market rates, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value ratio, credit score and other variables.  Terms and conditions apply.  Additional loan programs may be available.  This is not an offer to enter into a rate lock agreement under MN law, or any other applicable law. Call for details. 11/2015 2016-70A

HomeStyle® is a registered trademark of Fannie Mae.  Disclosure last updated 11/15

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HomeBridge has nationwide 203(k) specialists that can answer all of your questions.

Ready to Learn More about Renovation Loans?

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As seen on:

HomeBridge Financial Services, Inc. NMLS # 6521

194 Wood Avenue South, Ninth Floor, Iselin, NJ 08830

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