Homebuyers and Homeowners

Qualifying homebuyers

To qualify as a homebuyer under the FHA 203(k) program requires that the buyer:

  • Is purchasing a property that is eligible for the program
  • Is purchasing a property in need of at least $5,000 in rehabilitation
  • Earns enough income in order to make the monthly mortgage payments
  • Applies through an approved FHA lender
  • Uses only FHA approved contractors (borrowers may do the work themselves, but only under the streamlined 203(k) program)
  • Completes the approved renovations within the allotted time frame
  • Qualifying homeowners

    In addition to the purchase of a home, the FHA 203(k) program is also available to homeowners who want to refinance their principal residence, consolidating all existing loans and have funds available for renovation purposes at the same time.

    The FHA 203(k) program allows the homeowner to:

    • Refinance existing mortgages and wrap them into one loan that also allocates funds to cover renovation costs
    • To borrow up to 97.75 percent of the after-completed value of the property
    • 30 year fixed or adjustable rate loans available
    • All closing costs can be included into the new loan
    • Qualify with a minimum credit score of 640 (some lenders will allow a score of 620)