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Welcome to Crist Construction Online!


203K Contractor


What is a 203K Loan?

An FHA 203k loan allows you to borrow money, using only one loan, for both home improvement and a home purchase. These loans can also be used just for home improvements, but there might be better options available. 203k loans are guaranteed by the FHA, which means lenders take less risk when offering this loan. As a result, it's easier to get approved (especially with a lower interest rate).


203K Loan Basics

Fund repairs and purchase: You can borrow enough to make your purchase plus enough to make the necessary improvements. Because the Federal Housing Authority (FHA) is involved, lenders are willing to move forward with a property they otherwise wouldn't touch.

Temporary housing: Unless you want to live in a construction zone, you'll need funds for other housing arrangements. In certain cases, you can borrow extra to cover rent or your existing mortgage for up to six months.

Project overview: Your project must be completed within six months. Funds are placed in an escrow account and paid out to contractors as the work is completed.

It's essential to work with reputable contractors who don't underbid and who are familiar with the 203k process.

Eligibility: Owner/occupants and nonprofit organizations can use FHA 203k, but not investors. The program is designed for one to four unit properties, but condo and townhome owners can use the program for interior projects.

You don't need perfect credit  because the FHA protects lenders in case you default, it's easier to qualify. You still need sufficient income to cover the payments. It's best to have a debt to income ratio better than 31/43, but you might be able to go higher.

Depending on the type of improvements you have planned, other types of loans might be a better fit. For environmentally sustainable projects (like upgrades to more energy-efficient heating and cooling systems) a PACE loan can provide funding. PACE is available for commercial properties as well.

Temporary housing: Unless you want to live in a construction zone, you'll need funds for other housing arrangements. In certain cases, you can borrow extra to cover rent or your existing mortgage for up to six months.


Choose Crist Construction as Your 203K Loan Contractor

The experts at Crist Construction will help you with the 203K loan process, and have extensive experience working with 203K construction. Call (716) 896-3030 or email cristconstruction@gmail.com to get a estimate.


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