Can I Refinance & Renovate My Home with a 203K Loan?

Can I Refinance and Renovate My Home with a 203K Loan?

Yes you can! This type of loan is sometimes called a “rehab loan”. If you are looking to make significant improvements to your home, this may be the way to go.

A homeowner can consolidate their existing mortgage loan, and the cost of the home renovation project, into one new loan up to a percentage of the “after-completed” value of the house. The “after-completed” value of the house is the anticipated value of the house that takes into consideration all of the improvements that will be made to the house through an FHA 203k refinance loan. By using the “after-completed” value of the house homeowners will be eligible for a larger renovation budget than offered through a traditional mortgage loan or home equity line of credit (HELOC).

Traditional loans will use the house value without considering your anticipated improvements. The FHA 203k refinance loan offers homeowners the greatest borrowing capacity of any loan program that is currently available.

We highly recommend scheduling a consultation with a reputable,experience FHA 203K lender. Kokomo, Indiana lender, LeaderOne Financial, has a proven track record with FHA products; including the 203K home loan. Click here for their contact information. 

A phone call or appointment with a knowledgeable mortgage lender would be a great way to start the process of exploring this great option for improving your home.