The FHA renovation loan is identified as a 203K
Here is the math for 203K loans: Sales Price + Rehab Account = Acquisition Cost.
Rehab account = amount needed to do repairs + 10-15% contingency + fees
Down Payment (3.5%) is based on Acquisition Cost
If the transaction is a purchase, at closing Seller is paid and home transfers to Buyer. Rehab funds are now available to complete your project!
Standard 203K
The full 203K is known as the standard 203K and is for amounts over $35,000 (minimum is $5000) and/or for properties that require structural repairs. It has a higher rate and more requirements and stricter underwriting but it is awesome! For more info on the full 203K, click this link to find guidelines for a Standard FHA 203K loan.
Limited 203K
The limited 203Ks (the streamline version) is for repairs of $30,000 or less ($35,000 total including contingency and fees) and cannot include any type of structural repair or improvement.
If rehab account is below $35K (about $30K in actual repairs) and there are no structural repairs then the loan is eligible to be done as a limited 203K which requires less paperwork. Click here for details on the limited 203K loan.
For more info on the full 203K, click this link to find guidelines for a Standard FHA 203K loan.
NH Housing also offers an FHA 203K rehab loan. It is mostly the same but a little different. Click this link to the NH Housing 203K rehab loan.
Fannie Mae Homestyle Renovation Loan
Another Option (conventional loan) that is non FHA is the Fannie Mae Homestyle Loan.
I am there throughout the process to guide you along.
Renee Duval
NMLS # 97967
Bookend Lending LLC
(603) 345-5644
Licensed by the New Hampshire Banking Department