Tony L. Smith, PA (Broker Associate)+LCAM+Notary+Accredited Buyer’s Agent (ABR®)

FHA 203K Renovation loan

FHA 203K Renovation loan

  • Tired of finding only “ugly” houses?
  • Tired of losing the “bidding contest?
  • Tired of spending your weekends looking for that “perfect home?”
Tony L. Smith, PA (Realtor)+LCAM - 954-282-1814

Tony L. Smith, PA (Realtor)+LCAM – 954-282-1814

Tony L. Smith, PA (Realtor)+LCAM only represents homebuyers.   Tony’s only interest is you.   We don’t list properties and we don’t represent sellers.   We represent you, the homebuyer.  Tony provides a complimentary home buyer consultations for all the Fort Lauderdale communities.   Tony can be reached at 954-282-1814 or via email:

Stop spinning your “house-hunting” wheels and 203K them.    What is a 203k FHA?  Tony L. Smith, PA (Realtor)+LCAM is partnering with Titan Mortgage Lending to help you find your dream home.   It’s easier than you think.  Andy Wood of Titan Mortgage Lending focuses on financing homebuyers looking for that diamond in the rough.


203K Renovation loan.   With a FHA 203K Renovation home buyer’s are able to: following:

  • Find the outdated “ugly” house nobody wants, in your desired neighborhood of living
  • Purchase the “ugly” home “As-Is” with as little as 3.5% down from total loan amount
  • Starting customizing and personalize your new “ugly” home, into your dream home
  • Learn how to use the full 203K and the Fannie Mae HomeStyle that allows for:
    • Structural repairs
    • Room additions
    • Garages
    • Roof Replacement
    • HVAC
    • Termite Damage
  • No Limit to the amount of repairs for either program

Fanne Mae HomeStyle can also be used for 2nd homes and investment properties with 10%-25% down

Photos Courtesy of Titan Home Lending – A 203K mortgage lender

 Search for your ugly home here, find the “ugly” one and 203K it.   6-8 weeks to completion and you will be ENJOYING YOUR NEW HOME.

Contact Tony L. Smith, PA (Realtor)+LCAM for your complimentary consultation – 954-282-1814

The 203k Renovation Loans allows buyers to purchase a home and finance money to make repairs (needed or cosmetic) into the loan with only 3.5% down at closing (no income restrictions)

  •  The FHA 203K allows for any repairs (needed or cosmetic) up to the FHA loan amount in your county (Chinese drywall, termite damage, room additions, enclosing a carport, HVAC, roof,  flooring, cabinets, appliances, etc.)
  •  This program is perfect for bank-owned/REO, short sales and distressed properties, but can also be used strictly for cosmetic repairs. With 110% LTV, even newer homes are eligible!


Let our experience guide you through the process!

FHA 203K loans are guaranteed by the Federal Housing Administration (FHA) and provide an all-inclusive rehabilitation and property cost mortgage to individuals seeking financing of homes in need of repair.  With this loan, qualified home buyers can borrow up to 110% of the after rehab appraised value of the property.

Things to Know About 203K Loans

  • Similar to a standard FHA loan, individuals should expect to bring a minimum of 3.5% of the of the purchase price to closing.(THIS MEANS FINANCING CAN BE OBTAINED ON 100% OF REHAB VALUE!)
  • Individuals obtaining 203K loans must be owner-occupants whom are purchasing a new home or refinancing their current mortgage.
  • Maximum mortgage shall not exceed 110% of the appraised after-improved value.

Types of 203K Loans – there are TWO types.  Basic difference is the cost of work.  If the repairs will be less than $35k, then the loan is typically a streamline.  Major repairs (over $35k) require the 203k consultant.

  1. 203K StreamlineGenerally Cosmetic in nature. Not intended for major renovations.
    • Limited to a maximum value of $35,000 in rehab costs.
    • No minimum value for rehab costs.
    • Structural repairs or alterations to load-bearing walls are not permitted.
    • Major remodeling not permitted.
    • Room additions or home add-ons not permitted.
  2. 203K Consultant Generally for properties requiring rehab costs in excess of $35,000 or those requiring structural repairs, room additions, and room add-ons.
    • No maximum value of rehab costs.
    • A 203k consultant is required.
    • Limited to a minimum of $5,000 in rehab costs.

Required 203K Renovations

  • Cost Effective Energy Conservation Upgrades
  • Smoke Detectors installed in all bedrooms and living spaces
  • Other improvements required by the lender/insurance provider.

 Typical 203K Renovations include but are not limited to:

  • Energy Conservation: HVAC repair or replacement, ceiling insulation upgrades, energy efficient window installation, etc…
  • Required lender/insurance improvements: Can’t get insurance or a loan because of the condition of the roof?  203k loans are perfect for these scenarios.
  • Home Additions: Room addition or other home additions, disability access, etc…
  • Differed Maintenance: Roof repair or replacement, painting interior and/or exterior, water heater replacement, siding repairs or replacement.
  • Cosmetic: Bathroom/Kitchen remodels, etc…

What types of homes qualify?

In order for a home to be eligible it must be at least one year of age and may be any of the following: a one-to-four family dwelling, existing construction, FHA approved condominiums, mixed-use property, demolished residences with an existing foundations, or modular homes.

 The Process?

Sometimes a homebuyer has already found the perfect home that just needs a little TLC.  Other times, a Buyer anticipates that they will want to buy a “fixer-upper” so that they can renovate it to their exact taste.  The process may vary slightly based on the needs of the buyer, but we can help in any situation.

  1. The Buyer becomes prequalified with an approved 203K Lender.
  2. A sales contract is written, subject to cost of repairs.
  3. A work write-up is required, to determine the cost of repairs.   This can be done by a General Contractor or a 203k consultant (depending on size of scope).
  4. The Buyer should select a General Contractor to complete the selected repairs.
  5. The lender works with the 203K consultant and/or the General Contractor to obtain all the paperwork required to close the loan (this is where you will benefit using our experience!)
  6. The property closes and the seller is paid the proceeds from the sale of the property. Remaining funds for the rehabilitation are left in escrow.
  7. Shortly after closing the Buyer will receive a payment from the amount held in escrow to be handed to the Contractor in advance of construction. This amount will not exceed 50% of the total rehab value for materials only

Rehab commences.

Once rehab has been completed, the Buyer must notify the Lender of completion. (For rehab amounts in excess of $15,000, the Lender will send out a HUD-approved inspector to sign off on the work prior to final payment to Contractor.)

Tony as a licensed LCAM and Realtor can guide you through every step of the 203K process.  We make referrals to third parties to assist you such as lenders, appraisers and inspectors.    Next, a general contractor will  create a scope of work and cost estimate for the renovation for submission to your lender to ensure that your rehabilitation costs are eligible for the program and meet your budget.  You can be assured that, as a licensed certified General Contractor.

HUD FHA 203K Loan Program and 203K Consultants

A 203K  loan is a loan program that is offered through a list of available lenders that provides flexibility to a home buyer of existing homes (short sale or REO) who may have 3.5% of the value of the home available for a deposit, but does not have the available cash to purchase a home and then pay for the cost of renovations, repairs or maintenance that will make the home livable.

To be eligible, the following must apply:

  • Property must be a one to four family dwelling that has been completed for at least one year, or a condominium unit that has been approved by FHA.
  • You must plan to occupy the property after purchase, this loan program does not apply to investors.
  • All rehabilitation must conform to a minimum standard, and “luxury items” are not eligible.
  • Maximum loan amount is the lesser of (1) the Sales Price (as is value) plus the total rehab and closing costs or (2) 110% of the after improved value of the home (by appraisal).
  • Maximum mortgage amount can increase by up to 20% if such an increase is necessary for the installation of solar energy equipment.

The HUD FHA 203K Loan Program is a perfect solution for any buyer that is considering purchasing an existing home that may not be “move-in” ready – at least to your standards. The program is perfect if you are considering purchasing short sales or REO.  If you want to purchase property at “distressed” prices, this is a great time and a great program, as if you are looking for short sales or REO they will not be around much longer.

A 203K Consultant prepares a cost estimate on the house for approval by the lender as part of the HUD 203K Loan Program.  We also prepare the necessary documentation (with your signature) at the completion of the project to satisfy the bank that the work has been completed to everyone’s satisfaction.

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