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203k FHA 97% LTV Rehab Loan Program

This is a program that should get a lot of people out buying houses with it’s many possibilities. It’s the 203K program which works with FHA financing and it’s got a very high 97% LTV and I find it to be a very aggressive loan program for rehabbers in this market.

*One Time Close

*97% LTV of After-Improved Value
(Value is determined by Appraisers estimate of the properties value after completing the proposed project)

*Up to $35,000 Available for Rehab Project

*50% of Total Rehab Amount Available the Day of Closing (No Waiting for Funds)

*6% Seller Concessions

Allowable Improvements and Repairs

*Repair/Replacement of Roofs, Gutters and Downspouts

*Repair/Replacement/Upgrade of Existing HVAC Systems

*Repair/Replacement/Upgrade of Plumbing and Electrical Systems

*Repair/Replacement of Flooring

*Minor Remodeling, Such as Kitchens and Bathrooms

*Painting, Both Exterior and Interior

*Weatherization, including Windows, Doors, Insulation, Weather Stripping Etc.

*Purchase and Installation of Appliances, including Free-Standing Ranges , Refrigerators, Washers/Dryers, Dishwashers and Microwave Ovens

*Accessibility improvements for Persons with Disabilities

*Lead-Based Paint Stabilization or Abatement of Lead-Based Paint Hazards

*Repair/Replace/Add Exterior Decks, Patios, and Porches

*Basement Finishing and Remodeling

*Basement Waterproofing

*Window and Door Replacements and Exterior Wall Re-siding.

*Septic System and/or Well Repair or Replacement

This information is deemed accurate, but can change at anytime, please email for the most recent guidelines.

Email me at ron@minnesotainvestors.com if interested in buying some homes with this program.

Borrower(s) Shopping Guide to Qualified Repairs Allowed with 3.5% Down

Minimum Down 3.5% of Total Project Cost (Funds can be own or gifted)

Repair/ Replacement of roof, gutters, downspouts with permit

Heating/air conditioning- possible permit

Upgrade/Repair plumbing, and electrical systems with permits

Septic system and/or well repair or replacement with permits

Replacement of flooring, windows, doors, exterior wall re-siding

Minor remodeling such as kitchen or bath with no structural repairs, permit maybe required

Painting of exterior/interior

Purchase and installation of appliances

Handicapped accessibility improvements

Weatherization, painting, basement waterproofing

Repair/replace/add deck, patio or porch with permit

Minor remodels that do not involve structural repairs

Basement finishing and remodeling, which does not involve structural repairs with a permit

Pool repair maximum of  $1,500 in repairs allowed

Examples of repairs that do not qualify for the program:

Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;

New construction (including room additions);

Repair of structural damage;

Repairs requiring detailed drawings or architectural exhibits;

Landscaping or similar site amenity improvements;

Any repair or improvement requiring a work schedule longer than six (6) months; or

Rehabilitation activities that require more than two (2) payments per specialized contractor

NO to a garage, unless you are repairing an existing one. Cannot build a garage.

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