Two loans in one with MEP RI’s FHA 203(k) Renovation and Home Loan
A 203K Rehab Mortgage allows a homebuyer to finance the purchase of a home and the cost of renovations through a single mortgage. 203K will enable homebuyers to purchase a home that needs repair or modernization without following a complicated and costly process. The program provides for a single, long-term fixed or adjustable-rate mortgage that covers both the acquisition and rehabilitation of the home.
The rehabilitation and renovations eligible under this program include structural alterations and reconstruction, modernization and improvements to the home’s function, and elimination of health and safety hazards. Also included are changes that improve the home’s appearance, reconditioning or replacing plumbing, replacing floors and gutters, and so much more.
As an approved FHA lender, Mortgage Equity Partners can provide quick decisions and rapid turnaround times. In addition, our in-house 203(k) underwriter is an expert in this program.
How a 203(k) Can Help
- Remodel a kitchen or bath
- Add a family room or extra bedroom
- Make needed plumbing or electrical repairs
- Replace a leaky roof
- Make energy conservation improvements
- Improve handicap access
- Major landscape work and site improvements
203(k) Benefits
- Finance 96.5% of the acquisition cost PLUS improvements
- 55% debt-to-income ratio
- Close within 45 days
- Streamline K’s with 35K improvements
- Full 203(k) available
Eligible Properties
- Owner occupied
- A minimum of $5,000 in permanent, non-cosmetic repairs must be done to qualify.
- Property or foundation must have been in existence for at least one year.
If a 203K loan is appealing, you should contact our experienced FHA 203K loan officers because some details are required by the FHA that can make these loans challenging for lenders unfamiliar with the process.
