• Mixed Use Properties: You can renovate a mixed-use property provided the commercial space represents less than one floor of the structure. The commercial uses cannot affect the health and safety of the occupants.
• Home buyers that purchase a home with FHA financing can refinance the property using the 203k within six months of the original purchase, the same as if the buyer purchased the property with a 203k insured loan to begin with and you can get credit for the down payment you’ve already made.

There is a minimum requirement of $5,000 in eligible (necessary) improvements on the subject property for a Full 203k. Improvements such as repair to a garage, new garage or room addition can be included in the first $5,000. The Streamline “k” has no minimum amount of rehab. The Full 203k must include one or more of the following items:

• Structural repairs and alterations
• Room additions and garages
• Kitchens and baths that are totally remodeled
• Repair and replacement of Plumbing, heating, air-conditioning or electrical systems, Energy conservation improvements
• Installation or repairs on a well or septic system
• Major landscape and site improvements for drainage
• Patios, decks, fencing driveways and improvements for accessibility for the handicapped
• Changes for aesthetic appeal and elimination of obsolescence, painting and cosmetic repairs
• New siding, exterior doors, Thermo-pane windows and storm doors
• Replacement of flooring, tile or carpeting
• New appliances

What Properties Are Eligible?

• Any single family home up to four units that will be owner occupied that has been completed for a minimum of one year (if new) and is zoned as such.
• Homes that have been demolished or razed as part of the rehabilitation process as long as there is a portion of the original foundation remaining.
• A home can be moved onto a new foundation on the mortgaged property.
• Any residential property can be converted from a single family into a two, three or four family property or from any of those back into a single family.
• A manufactured home that was constructed after 1976 and has been on a permanent foundation for over one year provided it was delivered to the site new. Also included would be the “replacement” of the manufactured home.
• Mixed Use property; The rehabilitation funds can only be used for the residential functions of the dwelling.
• Condominiums are eligible with the same restrictions as a FHA loan.

Please Note: All lenders do not use the same 203k loan guidelines; check with your lender for their specific requirements before making any decisions on your purchase.