Tim Bradford   
Loan Officer  
Employee of AMMCorp.net


Build your dream home with the FHA 203k or
Conventional renovation loan programs...

203K General Information

An important tool for community and neighborhood revitalization, the FHA 203(k) loan offers flexible qualifying and low down payments:

  • FHA down payment (3.5%)
  • Flexible credit qualifying
  • Assumable loans
  • Finance up to 6 months of mortgage payments
  • Purchase or Refinance and Improve all in one loan

The 203(k) loan program offers borrowers the resources to rehabilitate a home that may be in need of repair, either the home that they currently live in, or that special fixer-upper opportunity. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.

Made available to certain lenders by the U.S. Department of Housing and Urban Development (HUD), the FHA 203(k) program has already provided many buyers with the funds necessary to buy their first home, or greatly improve a move-up home. The FHA 203(k) loan is available to borrowers of all income levels, to homeowners who plan to occupy the house, and for homes with one to four units.

  • 203K Eligible Borrowers:
    • Owner Occupants - Purchase - Refinance
    • Investors NOT allowed
  • Eligible Properties:
    • Single family dwellings
    • Condominium
    • Townhouse
    • Mixed Use (Storefront)
    • 1-4 Unit buildings- you can increase or decrease the number of units with this loan.
  • Structural Alteration and Reconstruction:
    • Changes for improved functions and modernization
    • Elimination of health/safety hazards
    • Changes for aesthetic appeal
    • Plumbing, heating air conditioning, and electrical upgrades
    • Well and/or septic repairs
    • Roofing, gutters and downspouts
    • Flooring, tiling and carpeting
    • Energy conservation improvements
    • Major landscape work and site improvement
    • Access for the disabled
  • Home Inspection:
    The cost of your construction is estimated by an FHA Approved 203(k) consultant (estimator). The cost consultant assists you in determining the scope of repairs and the costs budgeted for the renovation job.
    • Perform a home inspection to create preliminary costs estimates based upon FHA minimum property standards plus the scope of work as defined by the home owner/buyer.
    • Once project has been determined, the cost consultant prepares a "work-write up" and 3 contractor bid packages are issued to the home owner/buyer.
  • Appraisal:
    The appraiser will be given a copy of your "work-write up" to estimate an after improved value for your new home or current home. We loan against that improved value thus giving you credit for the work to be performed.
    • Contingency reserve (10%-20%)
    • Up to 6 months PITI mortgage payments
    • Permit costs
    • Consultant fees
    • Inspection and title update fees
    • Architectural & Engineering fees (if needed)
  • 7 Simple Steps to Buying a House Using FHA 203(k) Renovation Loan.
    • Locate the home you want and submit a contract for purchase - contingent on a home inspection.
    • After your contract is signed, schedule a home inspection with a 203(k) cost consultant to budget your renovation.
    • If you approve the budget, the 203(k) cost consultant will prepare the work write up for the appraiser and lender, and will prepare three contractor bid packages for you.
    • You can now bid your job to general contractors, or multiple sub-contractors.
    • Appraiser uses work write-up to value home as if all work is completed.
    • Loan closing (30 to 45 days average).
    • Within 30 days of closing start project with general contractor, or multiple sub-contractors.


Questions, comments, or suggestions?
Please contact us:
American Midwest Mortgage Corp.
Telephone: 216-324-8113


Thank you for visiting Ohio203K.com

Tim Bradford an employee of American Midwest Mortgage Corp-- OHIO MB.803389/LO.007173 ---- NMLS CO.142066/LO.250013
6363 York Road #300, Parma Heights, Ohio 44130
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