Designed for home rehabilitation purposes, FHA 203(k) loans can help pay for your home renovations. These loans are available both as a refinance and purchase. Thus, you can borrow against the equity in your home for home improvement and you can also get a single mortgage to finance both purchase and renovation of the home.
FHA 203(k) Loans can be a great option for home buyers who can meet these requirements:
To encourage the revitalization of older Southern California neighborhoods or damaged homes, FHA provides two types of loans to help homebuyers reserve a portion of loan funds to accomplish non-structural and structural repairs.
A standard 203(k) loan is provided for properties with the need for structural upgrades.
203(k) Eligible Repairs and Improvements include:
Ineligible Repairs include:
A Limited 203(k) loan covers non-structural upgrades, such as painting, new counters, cabinets, patching holes, replacing doors, repair/installation of HVAC systems, and purchase/installation of new appliances. The maximum repair amount which can be financed using a Limited 203(k) loan is $35,000 with no minimum requirement for repairs.
Eligible properties for a 203(k) loan include:
Before applying to receive a home renovation loan, decide as best you can regarding how much money you will need to begin your home renovation. If you hire a contractor, ask them to give you an estimate on the total cost of the home repairs. Once you have that specific number, discuss the possibility of a home renovation loan with us. Different loans offer different amounts to borrowers, so talking to a licensed Loan Officer can help determine the specific loan and amount that fits your project’s goals.
For any further questions about the types of home renovation loans we offer or whether you qualify for an FHA 203(k) loan, Contact CostPro Lending Team.
As a first-time homebuyer, you know the process isn’t guaranteed to be smooth. More than anything you hope that your lender will work hard to help your dream of homeownership come true. That’s exactly what Bobby did and in the midst of a pandemic. No, how about during the week the lending guidelines changed. It was unprecedented what was happening all around us. People with credit scores that would more than likely close on a loan were being rejected. I was one of those people with a “decent” score, and with the strict and tight guidelines being changed every hour. We weren’t so confident we would get cleared to close. I know for a fact other lenders would’ve walked away the moment they saw the challenge ahead in closing this deal. Bobby not only fought for our loan, he even battled with not so pleasant parties in the transaction. He was professional at ALL times and never once lost his cool even though I did (not towards him of course). He was knowledgeable and held our hands throughout the whole process reassuring us this was our home. He didn’t lie. Cinco de Mayo will forever be special for the Browns. On that day we bought our dream home!!! Thank you so much, Bobby. You already know…you’re our go-to for the next purchase or refi!KeKe Brown
We recently purchased a $795K home with Babak (Bobby) Afrasiabi as our loan officer. He was outstanding to work with. A few of the things that stood out were his knowledge of the process. He very accurately laid out the next steps in the process which gave me peace of mind which in turn minimized my stress levels. I also want to commend him for being very forthcoming on the rate and closing costs. From the beginning of the process, I asked him what rate he thought he could get us and he actually did better than he initially surmised. He also gave me a very accurate closing cost range. This was important because it allowed me to mentally see the finish line with a number I felt comfortable with. The final closing cost was right in the range he initially gave me. Lastly, what also stood out was his availability. As a first-time homebuyer, I had quite a few questions. Bobby had great response times via email and text. If you are looking to close on a home there is no one better to choose as your loan officer than Babak (Bobby) Afrasiabi. I give him 5+ stars!Rodney Rambo
Bobby very helpful all the way throughout refinance process. He made everything so simple and easy. It was a great pleasure to work with him and all the others that helped with the process.Tommy Faulkenberry
You’d think three reviews is enough, but good work is always worth commending. This round was a vacation home purchase, and it was certainly the most complicated deal we’ve done. You’ve got the time zone difference with Hawaii, the building was fee simple but there was a leasehold portion of the property’s parking, the building was also in a flood zone, etc… despite the odds stacked against us (and I do say “us” as this is a team effort when you’re buying a place) Bobby’s persistence, knowledge and people skills prevailed. The best part, I knew he’d get it done, from day one, and to top things off, we closed early. It still blows my mind how well Bobby is able to keep up with all the moving parts of the transaction, especially since I know this guy is working on multiple other deals all at the same time. So if you can’t already tell, I am going to be working with Bobby on the next project, give or take another year and you’ll see another review!Ivan Drury
I was transferred to Bobby, the agent, he was very brilliant and he explained all costs briefly, no surprises. Very detailed, once you completed the application and submitted all the required documentation, the processing was very fast. Thank you so much and I appreciated your help. Great job Bobby. You’re awesome!!Analynn Nelson