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I've lived in my home for ten years. Am I eligible for a 203k loan?

  • March 18 2011 - Chicago
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Answers (1)

Yes! Although 203k loans are most often used for purchases you can definitely also do a refinance to do repairs to your home. The key is determining roughly what the "after improvement" value of your home will be after the repairs and/or updating are complete. Since you've been there 10 years you should have some equity that would support this type of program.

So as long as you plan to live in the property still as your primary residence and qualify for an FHA loan, the 203k refinance loan shouldn't be a problem. You should seek out a mortgage consultant experienced in this type of financing as it is unique and most have never done one or they can't. So start asking around.

If you don't yet, it would be helpful to have a ballpark idea of the cost of materials & work you'd like to have done, your current loan balance and a rough idea of the value of similar homes in your area.

The good news is this 203k refinance process can typically be completed in 30-45 days so you could get this done in time for some great spring projects! Good luck...and have fun.
  • March 21 2011
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