Home Buying Tips
FHA Rehab Loans (Fixer-Upper Financing)
An FHA rehab loan (203(k)) lets borrowers finance both the purchase or refinance of a home and the cost of repairs in one mortgage. The standard 203(k) covers major renovations; the limited 203(k) covers smaller projects. Kathryn Cole connects buyers with lenders experienced in 203(k) financing.
Published March 11, 2024
What is an FHA rehab loan?
An FHA rehab loan — commonly called a 203(k) loan — allows you to roll renovation costs into your mortgage. There are two types: the standard 203(k) for major work and the limited 203(k) for smaller repairs up to a capped amount.
When does a fixer-upper make sense?
Fixer-uppers can work when you have a clear renovation budget, contractor quotes, and a lender who understands 203(k) requirements. Kathryn Cole helps buyers evaluate condition, after-repair value, and timeline before writing an offer.
FAQ
FHA Rehab Loans (Fixer-Upper Financing): FAQ
- Can I use an FHA 203(k) loan in Springfield, MO?
- Yes, FHA 203(k) loans are available in Missouri for eligible borrowers and properties. You need an FHA-approved lender and approved contractors for the work. Kathryn Cole can refer you to local lenders familiar with the program.