Louisville Kentucky Home Insider: What can you do with an FHA 203k loan?

What can you do with an FHA 203k loan?

Here is a great blog from a loan officer in California...

Ever walked into a home with "great bones" yet the kitchen and/or bath leave you with more to be desired??

Or maybe the whole house needs new hardwood floors and paint?

Or do you really, really want the ultimate "man's" garage?

All of these desires and dreams are possible through a FHA 203k Renovation Loan! This is one loan that finances the home and the upgrades to the home all in one. This is a great way to customize your home to your liking and maybe even add some equity!

The FHA 203k loan program is for purchase or refinancing a home PLUS you get the money to fix it up all in one low interest loan. That is the "BIG DEAL" about the program. If you were to purchase a home that needed significant renovation then go to the bank to get a construction loan you would be paying high interest and points on both loans. This is an "all in one" product that saves you on the points and the interest rate was under 4% on some we closed last week. Construction money might be 11-12% and 3-6 points... Yikes!

Before scene - 1 - 203k



The deck on this home was pretty well shot, lots of rot and in need of major repairs.

Kings Canyon area of Fresno






I really like the way they did the address on the door. Easy to read as you fly by this one... 




203k Before scene 2





Here is a closer look at the left side deck. The seller removed all the decking so no one would walk on it.


I love those pier and posts

"Got another rock" LOL 

American ingenuity is never failing.

So decks are for sure into the mix as to what you can do with a 203k





203k after improved front scene





Well I won't be able to find the address so easy any longer.



The front deck was turned into a porch, and the side deck has been modified to a deck of a lesser size.








203k After scene 2





That deck along the left side was removed fully and this covered area with a porch and steps was used to replace it.











There isn't much you can't do with the full 203k loan program. 

We can build a home as long as a piece of the foundation is still in place. We prefer the entire foundation but it may not be necessary. I had the City of San Pablo, CA remove houses along one block and they went one house too far and tore my clients house down. I called HUD and told them that the city's worker screwed up and asked what, if anything, could we do. HUD had me throw three pier and posts in my truck and install them near the crawl space access hole so they could be easily seen from there.

We can also put a foundation under a house that doesn't have one but the house is there. We added a perimeter foundation in San Rafael CA, on a 104 year old house that had no concrete perimeter foundation. 

We can updated any and all services, electrical, plumbing, update the entire home from foundation to the roof top, install a detached garage, or an attached garage with living area above it, we can convert a single family home to multiple units, convert multiple units to less units, provided the zoning will allow the changes. We can turn any structure that has been occupied more than a year... how about an old warehouse turned into live/work units - we have done it.

More you say? - how about an eight unit building vacant for years that had all studios - we converted it to a two bedroom unit and three four bedroom units as I recall. As long as the zoning will allow it and when you have had a building, an eyesore to the community that has been vacant for a number of years the cites and counties are typically very happy to get them back into production and increase their tax base. 

Solar electric is always draws a number of questions... yes, we can do the solar upgrade but the roof must be new or newer, the electrical service panel must be 200A-220V or upgraded to that during the course of construction. Is this a streamlined k loan.... NO. It must be a standard or full 203k and the panels must be purchased under the program and not leased. It is also in the guideline that while the solar upgrade can be part of the 203k in cannot ever be the only work being done, in other words "it isn't a financing program for solar electric" but solar electric can be part of a larger 203k loan.

Mike Young, 203k Team Leader    Mike ready for your 203k order

With offices coast to coast and HQ now at PMB 168, 5055 Business Center Drive, Suite 108 Fairfield, CA 94534 1.707.812.7668

To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young.

Skype name: the203kconsultant

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Sean S. Williams
Licensed Broker, Realtor
®, ABR®, e-Pro®
1st Time Buyer & Relocation Specialist
502.727.9784 cell
Semonin Realtors
of Louisville, Kentucky
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Comment balloon 1 commentSean Williams • December 18 2012 08:45AM


great insight into the amazing flexibilty of the 203K nice ideas. thank you very much

Posted by Jeffrey Jones, AZ Home Seekers, azhomeseekers.com (AZ Home Seekers) almost 6 years ago