203k Loans

This type of loan allows up to $35,000 to a mortgage to fix, or upgrade a home. REO owned properties and foreclosures often do not pass the FHA appraisal requirements.  An FHA 203k loan allows additional funds for repairs and improvements and allows for the purchase of a home that does not meet FHA appraisal standards.  Requirements for an FHA 203k loan is similar to an FHA loan, however, rates would be typically higher for an FHA 203k loan, and the general contractor hired to do the work cannot be a relative and must be licensed and bonded.