Buy the house that needs work with one FHA loan.
Fort Lauderdale office, lending all over Florida since 1997.
Which one sounds like you?
Every 203(k) starts with a house that isn't quite right yet. Pick the closest one and I'll take it from there.
The house needs work and you want it anyway.
Lots of older Florida houses need updates before they feel like home. The Limited 203(k) covers the non-structural fixes, and the Standard takes on structural work and additions.
You found a house but don't know what it needs yet.
That's normal. Most buyers find out from the inspection or the appraisal, and some just know the place looks tired. Send me the listing and I'll tell you what to look at. The loan gets sized once a contractor writes up the job, so you don't need the list today.
The appraisal came back subject to repairs.
The seller won't fix it, and a regular FHA loan wants the repairs done before closing. With a 203(k), the work goes into your loan amount and gets done after closing, so the seller doesn't have to touch it first. Send me your closing date and I'll tell you the same day how we get there.
The roof, the panel or the pipes are the problem.
Older Florida houses often come with an aging roof, a Federal Pacific or Zinsco panel, or polybutylene pipes. A 203(k) can pay for the new roof, the panel swap or the re-pipe as part of your purchase loan. I work with Florida insurance agents who will write the policy when the 203(k) replaces an old roof after closing, so the roof doesn't have to stop the purchase.
You already own the home.
A 203(k) refinance replaces your current mortgage and adds the work to a new FHA loan, based on what the house will be worth when it's finished.
Need an agent too? Our own brokerage, South Florida Homes Realty, can write the offer with the work priced in.
Put the work into the same loan as the house.
- Roof
- AC and heating
- Plumbing and re-pipe
- Electrical panel and wiring
- Windows and impact windows
- Kitchens
- Bathrooms
- Floors and paint
- Water heater
- Accessibility upgrades
- Driveways, fences and porches
- Structural work and additions (Standard 203(k))
Licensed, insured contractors do the work. Not sure what the house needs? Pick "Not sure what it needs yet" in the form and we'll work it out together.
The work decides which 203(k) you need.
Limited 203(k)
- For work that isn't structural.
- Covers most of the list above.
- No HUD consultant required.
- Usually the quicker of the two to close.
Standard 203(k)
- For structural work and bigger projects.
- Additions, foundation work and major remodels.
- A HUD-approved 203(k) consultant writes up the work and inspects each draw.
- If you can't live in the house during the work, some of your mortgage payments can be built into the loan.
Not sure which one you need? Tell me what the house needs and I'll tell you on the first call.
What will the house plus the work cost you?
Put in the price and what you think the work will cost. Leave a box empty if you don't know yet.
Down payment is before closing costs, which the seller can help with. The upfront FHA mortgage insurance goes into the loan on top of the estimate.
This looks like a Limited 203(k): work that isn't structural, no consultant required.
Figured at the 580-and-up down payment. We'll confirm your score band on the call.
On the first call I check your county's loan limit and the finished value, and give you exact numbers.
From the first call to a house that's fixed the way you want it.
- First call and pre-approval. We go over the house, the work and your numbers, and you get a pre-approval built on the price plus the work.
- Your contractor's bid. A licensed, insured contractor writes up the job. That bid becomes part of the loan.
- The appraisal values the finished house. The appraiser looks at what the home will be worth once the work is done.
- You close and the work starts. The contractor is paid in draws as each stage is finished.
As little as 3.5% down, figured on the price plus the work, with credit scores from 580.
A 203(k) has more moving partsthan any other FHA loan.
The contractor's bid, the as-finished appraisal and the draws all have to line up.I've closed complex FHA loans in Florida since 1997, and you'll have my cell, nights and weekends included.
Realtor with a buyer whose deal hit an appraisal or inspection problem? Send me the contract and the list of what the house needs. I'll tell you within the day whether a 203(k) saves it.
Real people. Real closings.
The folks who thought it couldn't happenare now holding their keys. Straight from Google.
"My Realtor told me the usual hold up is from the Lending side, but Jason would not let that happen."
T. Hard, Google review
"Never thought in a million years I would qualify... did not leave any stone unturned."
Debbie F., Google review
Serving Florida borrowers since 1997. Read client reviews.
What buyers ask me about the 203(k)
Are 203(k) loans still available?
Yes. FHA still insures them, and AAA Capital Funding closes them all over Florida. Fewer lenders offer them than offer a regular FHA loan, so a lot of buyers assume the program is gone.
Is it hard to get a 203(k) loan?
The credit side works like a regular FHA loan, with scores from 580. The extra work is the paperwork around the house. I keep the bid and the appraisal moving with you, so your closing stays on track.
What if I don't know what the house needs yet?
Plenty of buyers start there. An inspection or a contractor's walk-through gives us the list before anything gets signed.
How much work can I put into the loan?
The Limited 203(k) has a HUD cap on non-structural work, and with the Standard the total loan can go up to your county's FHA limit. Tell me the house and I'll give you the current numbers on the first call.
Who qualifies?
You have to live in the home. It can be a single-family house, a townhome or a 2 to 4 unit property where you live in one of the units. Credit scores start at 580 for the low down payment.
Can the seller just fix it instead?
If the seller will do the work before closing, that works too. When the seller won't, the 203(k) lets you buy the house anyway and do the work after you own it.
Can I do the work myself?
Usually not. A licensed, insured contractor you pick does the work, and you sign off on each stage before it's paid.
203(k) or HomeStyle?
Both put the price and the work into one mortgage. The FHA 203(k) is easier on credit and keeps the low FHA down payment. Conventional HomeStyle allows more kinds of upgrades and higher price points. Tell me the price and the work and I'll show you both.
Can I use a 203(k) to fix the home I already own?
Yes. The 203(k) refinance pays off your mortgage and rolls the work into one new FHA loan.
How long does a 203(k) take to close?
Longer than a regular FHA loan, because the contractor's bid and the as-finished appraisal come first. Tell me your contract date and I'll build the timeline around it.
Rather just talk now?
Got it. I'll call you.
