203K:
A 203k loan is a type of home improvement loan that allows current homeowners and potential homebuyers the ability to finance the purchase and costs of upgrades to their house in one single mortgage.
A 203K loan sometimes referred to as a Rehab Loan or FHA Construction Loan is an FHA loan product that is insured by the Federal Housing Administration (FHA).
For a 203K Loan you will need:
- A minimum FICO Score of 620
- A down payment of just 3.5% (You can receive 100 percent of your down payment requirement via a gift from family)
- A debt-to-income ratio (DTI) no more than 45%
- To occupy the house as your Primary Residence
- An approved contractor
- An approved HUD Consultant
- Begin construction/renovation within 30 days of closing
Home Style:
A Home Style loan is a home renovation loan that lets both potential and existing homeowners finance improvements, renovations or repairs to a home at the time of purchase or as a refinance transaction.
A Home style loan is a conventional mortgage loan product that offers a simple, flexible and affordable way to make your house your home.
For a Home Style Loan you will need:
- A minimum FICO Score of 620
- A down payment as low as 5%
- A debt-to-income ratio (DTI) no more than 45%
- To occupy the house as a Primary Residence
- An approved contractor
- To take a Homeownership Education Course
