- Type of Loan: The FHA 203K is considered a Government Rehabilitaion Loan insured by HUD.
- Loan Term: 15, and 30 years fixed.
- Mortgage Insurance: FHA requires MIP ( Mortgage Insurance Premium) both up front and monthly regardless of your down payment or loan to value.
- Credit Score Requirements: 600 Middle Credit Score for all borrowers.
- Down Payment Requirements: 3.5% is the minimum down payment on the improved value loan amount.
- Interest Rate: Fixed/ Adjustable
- Additional Facts: Designed for buyers interested in renovating and / or improving an existing property that may need some work or extensive remodeling. You have 6 full months to complete the improvement or repairs to the home you are purchasing. Standard FHA guidelines are used to determine eligibility.