The 203K
What’s the 203K and what makes it special?
Most mortgage programs offered today provide permanent financing that will only allow you to borrow based on the purchase price or current value of the property. If it needs work, the home is normally “de-valued”. The 203K Renovation Loan is different. It’s unique in that in most cases the lender is basing the value of your home on the “improved condition” of the home and 203K contractors love the opportunity it provides.
How can that help? It helps because you’re not placing out of pocket cash on the renovation. You’re borrowing the money “before” you renovate!
And, because the program allows current home owners to upgrade their home you can tap into the equity you may currently have in your home. You gain access to the increased equity the house will have when finished. This is most helpful when you are planning larger scale improvements like additions that add square footage to your home or adding a second story. The program allows the lender to advance funds to a contractor(s) as stages of the project are completed until the loan is fully drawn and/or construction is finished.
Find a 203K Contractor
Thousands of homes are available for purchase through the FHA 203(k) Mortgage Loan Program. We invite you to tour this site for step-by-step information and support for the program. We’re passionate about helping you find a home that’s right for you and it’s our goal to help you remodel it to perfection.
Gary Smith
203K Consultant/Energy Rater/Home Builder
9 Responses 
Our company is doing a lot of HUD 203K loans right now. Believe it or not Gary, I saw a contract for some repairs written on a brown paper sack the other day. Underwriters seem to still have a problem with that sort of thing & for good reason. For some reason, 203k loans have always indimidated some lenders & I honestly don’t know why. Maybe because it’s a little more paper work involved, but some people lose site in what our job is & that’s to make people happy in giving them a home!
I’ve not had the opportunity to deal with the “brown bag bid” but I’ve seen some that were too expensive. Part of our role as the consultant is to help “keep it real”. We use a national cost estimating guide and 35+ years experience.
Hello Gary Smith,
Just wanted to let you know that your white lettering on your light background page are very hard to read.
You have some great information for 203K users.
Jose, thanks for the heads up, we had a system error and the text color has now been repaired…
Thanks again!
Gary,
Nice website!!