An FHA 203(k) loan enables a homebuyer or a homeowner to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage! or to finance the rehabilitation of their existing home.
This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways:
· To purchase a dwelling and the land on which the dwelling is located and rehabilitate it
· To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it
· To refinance existing indebtedness and rehabilitate a dwelling
