Standard FHA 203(k) is for larger projects. Loan limits are 110% of the future value of the home provided that amount is within the California FHA Loan Limits. The FHA 203(k) is for homeowners who plan to actually live in the home. The 203k loan program requires a contractor to complete the work.

The FHA 203b loan is the most popular and often used FHA-backed mortgage product. The key difference between 203k and 203b loan types is that with the latter, your loan should be intended to pay the upfront price on a property which has already been appraised as not needing in excess of $5,000 of immediate repairs.

An FHA 203k loan is an FHA insured mortgage which allows home owners to borrow the funds needed to purchase the home in addition to the funds needed to renovate or modernize the home. FHA eligible repairs and updates can be made using FHA approved contractors for primary residences using one single loan.

Section 203k is a type of FHA home renovation loan that includes not only the price of the home, but includes funds to cover the cost of renovations. You are able to combine renovation costs and first mortgage with either fixed rate or adjustable rate FHA 203k mortgage. All repairs are done after closing the 203k loan.

There are two types of FHA 203(k) loans. The first is a standard 203(k) which is used for properties that need major remodeling or structural repairs. The second is the Limited 203(k) which is commonly used for new roofing, new appliances, or cosmetic repairs such as painting.

Down payment: The minimum down payment for a 203(k) loan is 3.5% if your credit score is 580 or higher. You’ll have to put down 10% if your credit score is between 500 and 579. Down payment assistance may be available through state home buyer programs, and monetary gifts from friends and family are permitted as well.