FHA Standard 203(k) Rehabilitation Mortgage
Thank you for making Peoples Discount Mortgage the #1 203(k) lender for Originations.
The Federal Housing Administration's FHA Standard 203(k) Rehabilitation Mortgage is an easy to use mortgage program specifically designed for those who wish to make improvements on an owner occupied home they own, or would like to buy.
Rather than having to obtain a separate loan to finance the cost of repairs (or walking away from a home they love because they don't have the cash for home improvements), the FHA Standard 203(k) Rehabilitation Mortgage allows you to finance the rehab costs within the first mortgage loan.
Peoples Discount Mortgage, Inc. is now offering two different 203(k) loans:
FHA Standard 203(k) Rehabilitation Mortgage: is used to purchase or refinance a home that needs major rehabilitation, or when the repairs are structural in nature. The standard 203(k) loan is also used when the total renovation costs exceed the $35,000 limit of the limited 203(k) rehabilitation loan. Also, the borrowers will receive an added layer of protection from the use of a 203(k) consultant. 203(k) Consultants are experts in their field and are used to safeguard against under or over estimating the cost of the repairs. For a list of approved FHA 203(k) consultants (click here).
FHA Limited 203(k) Rehabilitation Mortgage: is an all-in-one loan used for homes that need minor repairs. It allows borrowers to finance the purchase of an existing home or refinance a home they currently occupy and make improvements or upgrades of up to $35,000. There are no minimum repair costs with the FHA Limited 203(k) Rehabilitation Mortgage. (FHA Limited 203(k) Rehabilitation Mortgage)
Type of work for a FHA Standard 203(k) Rehabilitation Mortgage:
- Structural alterations and additions (with upfront approval)
- Upgrade central air/heat, and electrical systems
- Repair termite or moisture damage
- Remodeled kitchen and baths, modernize plumbing
- Install or repair well or septic systems
- Roofing, gutters, downspouts
- Flooring, tiling and carpeting, interior / exterior painting
- Energy conservation improvements
- Major landscaping
- Improvements for disability accessibility
- New free standing appliances
- Foundation repair
- Other improvements that are a PERMANENT part of the real estate*
*Luxury items are not permitted to be included in the financing.
Eligible properties are attached and detached 1-2 unit primary residences that have been completed for at least one year, manufactured homes, and FHA approved condominiums
Ineligible properties include demolished homes, razed homes, a structure relocated to another location, mixed-used properties, co-ops, investment properties, mobile homes and 3-4 unit properties
Questions?
If you have any questions regarding this or any other program, you can either chat with a Program Specialist by clicking on the link at the bottom of the page, call a Program Specialist using the toll free number or e-mail loans@pdmtg.com