Iowa USDA Loans

FHA 203k

Many of the homes currently coming on the market need cosmetic work, with some of them also needing major renovation to make them habitable. Homes like these are difficult to buy and sell , as buyers typically shy away from them due to the up front cash needed.

FHA has a mortgage financing program called the FHA 203k mortgage that allows a borrower to get a new mortgage on one of these "fixer-uppers" and roll the renovation costs into the loan. The borrower doesn't have to stress about coming out of pocket with the rehab costs.

  • Borrowers purchasing a home in need of rehabilitation.
  • REOs, foreclosures, and short sales
  • Incomplete renovations
  • Out-dated kitchen, bathrooms, etc.
  • Borrowers refinancing existing home and making improvements.
  • Improve before you sell
  • Out-dated kitchen, bathrooms, etc.

Cannot use 203K to complete new construction. Must have occupancy permit 12 months prior to doing a 203K.