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 liens secured against the subject property and rehabilitate such a dwelling.
Minimum Down Payment: On most purchases, the minimum down payment is only 3.5% of the total loan amount (loan plus rehab amount combined).
Defer 6 months of Payments: On a purchase or a refinance the borrower is allowed to defer up to 6 months of mortgage payments if there is enough equity in the future value of the property. For example, a home could be purchased or refinanced in January but the first mortgage payment could start as late as September. To see if you might qualify for the deferment contact a representative who can assist you at 888-299-4484 or click here.
To purchase a dwelling and the land on which the dwelling is located and rehabilitate it, and to refinance existing indebtedness and rehabilitate such a dwelling, the mortgage must be a first lien on the property and the loan proceeds (other than rehabilitation funds) must be available before the rehabilitation begins.
To purchase a dwelling on another site, move it onto a new foundation and rehabilitate it, the mortgage must be a first lien on the property; however, loan proceeds for the moving of the house cannot be made available until the unit is attached to the new foundation.
[For an Approved 203(K) Lender click here or call 888-831-3511]