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Using fha 203k to renovate basement?

Can I use a 203k refinance to repair plumbing in my basement and receive funds for fixing up as well? Is it allowed. 734 fico, no previous refinances done. I am currently a fha loanholder too by janice1owen78642470 from Pierpont, South Dakota. Mar 4th 2015 Reply


You may also be able to do a conventional renovation loan which may be a cheaper alternative if you qualify. Thank you

Mar 4th 2015
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Ray Antonelli (Focused)
#67 ranked lender in Ohio - 62 contributions

Yes you may qualify for a 203k renovation loan as long as the borrowed amt for fixup doesn't exceed 35K and you make no structural upgrades like adding a room or moving a wall.The current mortgage amt plus the cost of repairs cannot exceed the new appraised value either after the repairs/improvements are complete.

Mar 4th 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Yes.. but conventional has the HomeStyle Renovation loan that has much more forgiving terms.. no consultant required, no restrictions on what is being done to the property, and no upfront MI charges.. Also, depending on what your equity percentage is, you might not have to pay monthly MI.. Not the case with FHA.. all loans regardless of equity position have upfront and annual/monthly MI premiums.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Mar 4th 2015
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Edward Fallon (edfallon)
#92 ranked lender in Pennsylvania - 143 contributions

Yes. Without knowing the particulars, the 203k is the most flexible in terms of qualifying. However, with a 734 FICO the Fannie Mae HomeStyle will have lower mortgage insurance costs. We will use the "after improved" appraisal to determine the loan to value ratio. If the loan is 80% or less of this amount, you won't need mortgage insurance on the HomeStyle, but you will on the 203k. Contact me directly if you would like to discuss. Good luck.

Mar 5th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,960 contributions

The FHA 203k rehab loan is very cool and does allow someone to refinance their existing home AND get money to repair or improve the property. It is much more complicated than it sounds, so contact an FHA 203k loan expert in your area for more information, and to check your personal situation. There are two type of FHA 203k loans, streamlined for repairs under $35k, and full for repairs over $35k and big repair jobs (like structural changes). I love 203k loans, and we offer then for properties in MN, WI, and SD. Visit www.MortgagesUnlimited.biz

Mar 5th 2015
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