What is a 203k loan? Most often you will hear about them if you are looking at buying a distressed property. They are technically called FHA 203k loans because they are offered by the Federal Housing Administration. These loans are specifically for homes that are in a bad state of disrepair with the hope that someone will by them and be able to fix them up. The loan covers the purchase of the property and specified home repairs. Normally, the down payment is quite low and in some cases you can refinance with a 203k loan as well. Typical repairs covered by this type of loan would be: roof, floors, bathroom, additional rooms and more. Speak with your loan officer to find out more detailed information.
Below is an infographic from RealtyTrac
about 203k loans: