The easiest way to think of this loan as a single-close construction transaction, but in this case it only requires a 3.5% down payment. The seller gets the agreed amount for the sale of their house, and the remaining funds borrowed go into an escrow account towards the rehab of your new home.

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The amount needed to borrow can vary greatly, but some improvements that are made are:

• Flooring.

• Painting.

• Kitchen or bathroom remodels.

• Electrical system upgrades.

• Replacement windows.

• Energy-saving improvements.

• Room additions.

A 203K loan is a low down payment government rehabilitation loan that allows home buyers the opportunity to borrow funds for their project. This program affords buyers the opportunity to finance not only the purchase of the home, but funds to fix it up. In an ideal world, the home being purchased would be move-in ready. But sometimes homes just need a little improvement to make it your own.