HUD HOME BUYER RESOURCES
Available Mortgage Products
FHA 203(b) is the standard FHA loan that does not call for repairs to the home other than possibly repair escrows not to exceed $5,000.
The FHA 203k loan program is a program that allows the borrower to obtain money within the financed loan to make necessary repairs. If a home requires more than $5,000 of repairs the borrower takes a loan out for the amount of the sales price plus the estimated repair cost. Then after closing and funding the borrower hires the contractors to perform the work and turn over final invoices to the lender for the payment of those invoices. The lender handles all the payment of the invoices and usually requires a third party inspector to verify the work was completed before final payment is released.
FHA Streamline 203(k)
FHA’s Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before moving in. Homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Homeowners may make property repairs, improvements, or even prepare their home for sale.
This type of mortgage uses cash or a bank loan that does not involve FHA financing.
Veterans Affairs (VA)
Eligible veterans can use this type of financing to obtain a VA – guaranteed loan. For more information on this type of mortgage, click here.