Mike Mccue - Gustan Cho Associates

06/07/2021

1. Types Of FHA 203k Loan Programs

* FHA now offers two types of acquisition and construction mortgage loan programs all in one loan and closing.

- The first is the FHA 203k streamline mortgage loan program
- The FHA 203k streamline limits the maximum construction
- The rehab loan limit is capped at $35,000
- It can be used for non-structural rehabs such as kitchen and bathroom remodeling, new flooring, painting, millwork, mechanical systems, windows, roofing, siding, basement remodeling, attic remodeling, and other non-structural remodeling projects
- Structural work is not allowed on streamline 203k loans
- The second 203k loan program is the Full Standard FHA 203k Loan program
- There is no construction loan limit with the Standard 203k loan
- The acquisition and renovation loan limit is capped at the maximum FHA loan limit for the county
- The after completed value needs to appraise out
2020 FHA loan limit is capped at $314,760 on single-family homes
- Structural construction is permitted on the full standard 203k loan program

* Room additions, second-floor additions, gut rehab, and even tear downs are permitted with a Full Standard 203k Loan program.

Read more https://gustancho.com/fha-203k-loan

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