In this week's blog I am hoping to educate our readers on FHA 203K loans.  Here's why: if you are thinking of getting a mortgage loan for a fixer-upper, then you may want to read about the benefits of a FHA 203K loan to help you save a tidy sum. If you are in the market for a home and have your eye on a home that may need a little more TLC or if a major remodel is likely required to obtain a Certificate of Occupancy, you need not necessarily be afraid of the costs to remodel. Nor do you need to fear the possibility that a lender won't give you a loan because the home is considered “uninhabitable”. That is where an FHA 203k loan comes in.

As stated by our friends at Zillow, "An FHA 203k loan is a loan backed by the federal government and given to buyers who want to buy a damaged or older home and do repairs on it.  Here’s how it works. Let’s say you want to buy a home that needs a brand-new bathroom and kitchen. An FHA 203k lender would then give you the money to buy (or refinance) the house plus the money to do the necessary renovations to the kitchen and bathroom. Often the loan will also include: 1) an up to 20 percent “contingency reserve” so that you will have the funds to complete the remodel in the event it ends up costing more than the estimates suggested and/or 2) a provision that gives you up to about six months of mortgage payments so you can live elsewhere while you’re remodeling, but still pay the mortgage payments on the new home."  

As an additional resource,, the leading source for home mortgage data, recently published a guide titled "How This FHA Loan Can Help You Repair your Home". This guide was created to educate homeowners on how a 203(k) loan can be used to renovate their home and includes advice from several financial experts about how these loans work by explaining:

  • 203(k) benefits for home buyers and homeowners
  • Limited vs. standard 203(k) mortgage
  • The rules on 203(k) loans
  • Qualifying for a 203(k)

If you are starting your home purchasing plans or preparing your home for sale and have questions about the process, our team would be happy to help you. Or if you would like to see housing data for Boulder County, we have seasonal statistics to check out in such as "Days on Market", "Total Inventory" and "Newly Listed Homes" here. LRA tracks all these market statistics for Single Family Homes (SFH) for most of neighboring towns on a monthly basis, including Louisville, Lafayette, Superior and Erie. At Louisville Realty Associates, we have the experience, energy and depth of knowledge to help you list your home for the best price. You can reach our team anytime at

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