Does your new house need work? a 203k loan might work for you. Not all mortgage lenders are familiar with the 203k program. Acre Mortgage’s specialists are well-versed on the process and will be there to guide you from start to finish.

Did you find a house you love, but it’s in dire straits and in need of TLC? Could your current home benefit from upgrades? This remodel loan allows buyers to purchase a home in need for repair and provides the funds needed for repair and upgrading. 203k loans also work with refinancing, allowing for upgrades and repairs to your existing home.

We use the future value of the home after repairs to determine the client’s equity position for qualifying, and because it is an FHA loan the down payment is low and qualifying is generally easy. A 203k loan is also known as a Rehab Loan or FHA Construction loan.

The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one- to four- unit structure.


The types of improvements that borrowers may make using Section 203(k) financing include: 

  • structural alterations and reconstruction 
  • modernization and improvements to the home’s function
  • elimination of health and safety hazards
  • changes that improve appearance and eliminate obsolescence
  • reconditioning or replacing plumbing; installing a well and/or septic system
  • adding or replacing roofing, gutters, and downspouts
  • adding or replacing floors and/or floor treatments
  • major landscape work and site improvements
  • enhancing accessibility for a disabled person
  • making energy conservation improvements

If the 203k Program does not seem like a fit for you, Acre Mortgage can seek other financing options, such as a home equity line of credit, home equity loan, or more. Contact us today to discuss your remodeling goals and financing needs.

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