what is FHA 203k loan
FHA product where borrower gets $20000 outside of the purchase to complete improvements. They can buy a "fixer" BUT it cannot have structural problems. They can fix the roof, change the flooring, weatherize, remodel to beautify. They need to use a general contractor and after the closing half is paid in a joint check to the contractor to purchase materials. The work needs to be done in six months. There are a few luxury items they are not allowed to include like swimming pool, tennis courts... The standard FHA loan limit applies. Borrower unfortunately pays PMI until they sell or refinance.
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