Welcome to FHA 203K
A 203k loan is simply a FHA loan with a twist. An ordinary FHA loan referred to as a 203(b) in the the mortgage industry. Adding renovation or improvement costs to the loan you get a 203k!
Through this loan program, renovations are completed after closing of Escrow by using a portion of the loan proceeds to cover improvement costs.
Funds are held in a managed account with the mortgage company, earning you interest during the renovation period. "Draw requests" throughout stages of renovation release funds to your contractor's as the work progresses.
Now you can!
The FHA 203k loan is a HUD approved FHA home loan. The difference is, 203k includes money for home repair and remodeling. The 203k loan may allow you to have the home you always wanted. This is a terrific loan program, and not too complicated.