FHA Add Home Improvements to a Purchase

FHA 203k Purchase Home Loan Requirements

The Federal Housing Administration (FHA), part of the Department of Housing and Urban Development (HUD), administers several single family home loan programs. These mortgage programs operate through FHA-approved lending institutions who submit forms scheduling the appraisals of the property and also have the borrowers credit approved. These banks fund the mortgage loans which the Department insures, (as the U.S. Department of housing  does not make direct loans to help people buy homes). 

If you are one of the many U.S. residents who have overlooked buying a home that needs cosmetic repairs for lack of funds to fix them up, the  FHA has a loan program for you. The FHA 203k loan program is the Department's primary program for the purchase and rehabilitation and repair of single family properties. Basically this is a home improvement loan added to the purchase price of your home.  Therefore, this is fast becoming the most popular FHA Loan Program for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that FHA  203k loan is an important program and they intend to continue to strongly support the program and the banks that participate in it.