FHA Loans are available with both Fixed and Adjustable Interest Rates. Terms are available in 15 and 30-year lengths.
FHA 203k Standard & 203k Limited Construction Loans
The FHA 203k is the most commonly used renovation/construction loan. Before the Conventional Fannie Mae HomeStyle loan, it was virtually the only option on the market. On properties that need minor or major repairs, home buyers or owners can use the 201k Renovation loan to make desired and required repairs. Luxury updated are not allowed and certain repairs MUST be completed. FHA offers a limited version of the 203k which caps the renovation cost to $35,000- but also has fewer requirements.
This is a great option for those who may not qualify for a conventional loan, are looking to perform the work on an owner-occupied multi-family home with a small down payment, and/or have FICO scores that are below 680.