About The Minnesota FHA 203k Loan Program

What Is An FHA 203k Renovation Loan?

The FHA 203k Loan is one of many popular home improvement loan programs that allows a homebuyer the ability to include the costs of renovating a property into one single mortgage at the time of purchase.

Available for both minor cosmetic or major structural home renovation work, FHA 203k Loans can be used when buying a home as well as for current homeowners through a refinance.

203k and other rehab loan programs give buyers the advantage of shopping for a home in Minneapolis based on location and affordability since many of their desired property upgrades and amenities can be added to the home within a short period after closing.

Main Benefits Of 203k Loans:

  • Finance Upgrades - Cosmetic and structural rehab work.
  • Flexible Underwriting - Standard FHA credit guidelines.
  • Get What You Want - Buy a property, turn it into a home.
  • Increased Values - Improve the re-sale value and save money.
  • Energy Efficient Upgrades - Save on utility expenses.
  • Low Down Payment - Finance up to 96.5% plus upgrads.
  • Perfect "Fixer-Upper" Loan - New paint, carpet, kitchen remodel... and the list goes on.
  • Discounted Listings - Get a better deal when buying a property that needs a little TLC.

This program helps preserve or increase neighborhood real estate values, as well as creates employment opportunities for 203k Contractors in Minneapolis .

The 203k rehabilitation mortgage program was intended to expand homeownership opportunities and affordability while revitalizing communities and neighborhoods by providing financing for properties that need renovation work to make them livable or sellable.

FHA's primary goal is to help borrowers purchase a home they may not otherwise be able to finance based on the down payment requirements of most conventional loan programs. To further that goal, FHA offers favorable loan terms, higher loan limits, and flexible down payment options to qualified buyers.