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FHA 203k Loan in Seminole County, Florida

What’s on your current itinerary? Suppose it’s buying a home and turning it into a paradise with state-of-the-art kitchens, adequate bathrooms, a functional sewer system, or any other essential feature. In that case, we may have a funding solution for you: the Federal Housing Association’s (FHA) Section 203k loan program.

But, to enjoy an FHA 203k loan, you must first apply and meet eligibility requirements. Do these sound alien? Don’t worry; we’ve got you covered.

This article will introduce you to everything you need to know about the FHA 203k loan program and guide you through the application process. And our bonus section lists delicious desserts you can enjoy in Seminole County, Florida.

Introduction to FHA 203K Loans

FHA Loans go by many names- renovation loans, section 203k loans, and mortgage rehabilitation loans. Either title refers to a government-backed solution you can use to finance home purchasing and renovation projects simultaneously.

But, if you are a homebuyer or homeowner, you may opt for an FHA 203k loan whenever you want to combine the incurred renovation and real estate costs. So, if there’s a home you plan to buy but are second-guessing yourself because it needs significant repairs, rehabilitation, or renovation, an FHA 203k loan can help you take the final leap.

Types of FHA 203K Loans

Two types of 203k loans are available today:

Standard FHA 203k loans

A standard FHA 203k can help you pay for major structural repairs or remodeling projects. At the moment, the least you can get with this program Is $5,000, so you need to have a sizable project at hand.

Although there’s no set maximum limit for standard FHA 203k loans, one rule of thumb caters to that. Generally, the maximum improvement cost for a standard FHA 203k loan shouldn’t exceed a home’s purchase price plus rehabilitation costs. In addition, this program can’t fund more than 110% of your home’s after-repair value.

Popular projects often financed by the standard FHA 203k loan program include new flooring, complete kitchen remodels, energy-efficient remodels, structural additions, appliance replacements, complete bathroom remodels, and significant structural alterations.

Limited FHA 203k loans

Suppose you have a minor home improvement project which isn’t big enough to make taking out a standard FHA 203k loan necessary. In that case, you may apply for a limited FHA 203k loan.

Limited FHA 203k loans are a homeowner’s best friend where minor non-structural repairs and remodeling projects are involved. What does that mean? You can use this program to pay for more minor renovations or repairs on a new or existing house, provided the project won’t cost a cent above $35,000.

You can fund projects using a limited FHA 203k loan, including plumbing repairs, flooring, window/door replacement, and cosmetic bathroom or kitchen remodeling.

To summarize, limited FHA 203k loans are best-suited for minor property improvements, i.e., upgrades and cosmetic repairs.

Eligibility Criteria for FHA 203k Loans

Most FHA-approved lenders finance applicants that meet the following requirements:

Credit Score

For most loans, lenders require applicants to have a credit score of at least 620. However, FHA 203k loans, like other government-backed mortgages, come with more lenient terms. Generally, you can get an FHA 203k loan if your credit score is 580 points or more.

What if your credit score is lower? The good news is that the FHA backs loans for applicants with credit scores that are as low as 500. But a lender may still overlay their restrictions and deny you an FHA 203k loan if you have 579 or lower points.

Down Payment

Many government-backed loan programs have reasonable down payment requirements. For instance, if you have a good credit score, you can get an FHA 203k loan without exceeding 3.5%.

But if you have poor credit and your score is below 580 points, prepare to pay at least a 10% down payment. Why? FHA-approved lenders use larger down payments from applicants with low credit scores to lower risk and encourage borrowers to have more stake in the property.

The key takeaway is that the higher your credit score, the less you’ll have to put down.


Most lenders verify borrowers’ citizenship for various reasons. First, if you are an alien, circumstances or issues like deportation may force you to leave the United States in a hurry before paying off your loan.

With that in mind, the Federal Housing Association doesn’t discriminate against borrowers solely based on U.S. citizenship status. You can apply for an FHA-backed loan, provided you are a legal resident or nonresident alien.

Although the FHA doesn’t prioritize actual U.S. citizenship while determining borrower eligibility, you can’t apply for an FHA 203k loan if you are a non-US citizen and don’t have lawful residency in the United States.


Strictly speaking, you can only use an FHA 203k loan to pay for renovations or repairs involving your principal residence. The Federal Housing Association defines principal or primary residence as property the owner occupies for a significant portion of any given calendar year.

That being said, you can still use the FHA 203k loan program to fund improvements related to an investment property. But there’s a catch. If you want this solution to help you purchase an investment property and make the necessary improvements or upgrades, ensure you are eyeing a multi-family building and are ready to make one of the units your primary residence.


You can borrow a Section 203k loan and use it to make any of the following improvements:

  • Reconstruction and structural alterations

  • Elimination of safety and health hazards

  • Home function’s improvement and modernization

  • Changes aimed at eliminating obsolescence and improving the overall appearance

  • Significant site improvements and landscape work

  • Undertaking energy conservation improvements

  • Making a building friendlier for disabled people

  • Replacing or reconditioning plumbing

  • Installing a septic system and water well

  • Replacing or adding floors, gutters, downspouts, and gutters

How to Apply for FHA 203K Loan in Seminole County, Florida

To apply for an FHA 203k, follow these steps:

Pick a Project

As mentioned earlier, you can use an FHA 203k loan to pay for specific projects. These include roof repairs, improving your home’s curb appeal, redoing the landscape, overhauling plumbing, and enhancing a building’s functionality or accessibility.

Choose an FHA-approved Lender

Not all lenders provide FHA 203k loans. These are offered solely by institutions that have submitted applications to the Federal Housing Association, undergone rigorous vetting, and met the FHA’s strict eligibility requirements.

You can get a list of approved lenders from the Housing Unit Development’s (HUD) official website.

Select a Contractor

Once you’ve established the project you want to embark on and found a lender you’d like to partner with, look for a good contractor. Base your decision on numerous factors, including company ratings, precious customer reviews, track record, and communication quality.

Most importantly, look for a contractor whose bids and estimates match your expectations and FHA stipulations.

Submit All Required Documents

An FHA-approved lender may ask you to provide documents with the following:

  • Personal info - social security card, driver’s license (or any other official state I.D.), work permit or green card (if applicable), any divorce, palimony, or alimony papers, residency address for the last two years.

  • Employment / work info - three recent paystubs, completed tax returns for the last two years, a relevant IRS (Internal Revenue Service) tax form, and business tax returns for the past two years (self-employed applicants).

  • Savings / banking info - relevant bank statements, recent statements from 410k, retirement accounts, mutual funds, or any other investment account.

Close the Loan

After submitting your applications and supporting documents, the lender with check your eligibility based on the institution’s rules. If you meet all requirements, the next step should involve signing loan documents, kickstarting the project, and enjoying your dream home.

A person holding a paper sheet with FHA 203K Loan written

Don’t Move Out; Get What You Need Out of Your Current Home

We all know how hectic moving can be and have reasons to hate this process. Think about it. Which were the challenges you faced while moving? Maybe it’s high costs, rowdy movers, lost items, or the stress of packing and unpacking.

Either way, moving or relocating is draining, bordering nightmarish. Fortunately, you don’t have to take this drastic step whenever repairs and upgrades come knocking. You can get an FHA 203k loan and use it to get what you need out of your current home.

If you want to breathe new life and enjoy the heck out of your property, consider using the Section 203k loan program to do the following:

Add A New Bathroom

Let’s face it. Living in a house with a single bathroom can be pretty inconvenient at best. Picture hosting family and guests over the holidays. They’ll probably have to line up, waiting for each other to finish, which can be a disaster. How will they share a single facility?

Not to forget, there’s little privacy in a home with one bathroom. That is so because when people share an important facility like a bathroom, items like toothbrushes, medicinal drugs, makeup, and more can quickly become communal property.

But you don’t have to let insufficient bathrooms make your home a nightmare. Why? You can use an FHA 203K loan to add a bathroom(s) to your property. This solution can also help you repair or renovate the current facility to serve your loved ones better.

Add Square Footage to Your Home

Several reasons support the decision to add square footage to your home. First, building an additional room makes entertaining a breeze, especially when you have more than one guest spending the night at your place. Not to forget that children and other household members often need their rooms and privacy.

What’s more, adding square footage boosts property value. According to experts, every 1,000 sq ft you add to your home can increase its resale price by 30%. Is there a better way to bolster property value? Probably not.

The good news is that the Section 203k loan program can help you add square footage to your home. So, if your family needs one more bedroom or you’d like to build a garage on your property, this FHA-backed solution can help.

Add Cosmetic Touch to the Property

Has an expert ever told you that your home needs cosmetic touch-ups or sprucing up? These words are often thrown around, and many homeowners often misinterpret their meaning.

When a professional recommends cosmetic touch-ups, your home doesn’t look that good. It may have peeling paint, overgrown hedges, smelly carpets, ugly wallpaper, nail holes in the wall, etc.

Luckily, quick and extensive cosmetic touch-ups can fix most of these issues and improve your property’s overall appeal and value. And if you don’t have cash at hand to hire an expert to zhush up your property, you can take out an FHA 203k and use it to that end.

Improve a Pool to Your Backyard

Having a pool in your backyard sounds fantastic, right? You can use this feature to have a great time with family and friends, create lasting memories, or enjoy the ever-relaxing dip when temperatures soar and the heat becomes unbearable.

However, the relationship between the FHA 203k loan program and swimming pools is complicated, so pay close attention.

The Federal Housing Association considers features like swimming pools as luxury amenities. And this platform doesn’t fund the construction or addition of items that fall under this category to residential homes. In other words, you can’t use a Section 203k loan to create a backyard oasis on your property.

But all isn’t lost. If you already have a pool but can’t use it because it’s deplorable, An FHA 203k loan can finance its repair. But to enjoy this advantage, you must pick an FHA-approved lender that supports pool repair.

Top 5 Desserts to Enjoy in Seminole County, Florida

Adrienne Posey, the celebrated author, once said dessert is necessary for life. We can’t agree more.

Desserts cap a perfect meal and make dining a joy. What’s more, the perfect deserve can turn into a pretty delicious breakfast, and help you improve health through lower blood pressure, reduced risks of stroke, and better mood.

Keeping that in mind, here are five delicious desserts you can celebrate with after your FHA 203k loan application goes through:

Vampire Penguin

Ok, a dessert called vampire penguin sounds interesting. You likely wonder what type of treat this is and whether trying it is a good idea. The answers to both questions are delicious and yes, respectively.

Vampire penguin treats are typically made of three primary ingredients: fruit concentrate, sugar, and non-dairy. These combine to give you light, ice cream-like treats you’ll likely love to bits for the rest of your life.


Why are so many people fascinated with cupcakes in this era? Simple. These treats are often irresistibly pretty, easy to carry around, and a perfect treat for anyone with a sweet tooth. Moreover, healthy cupcakes are available today, and they are now a favorite for individuals staying away from sugar, dairy, etc.

If you love cupcakes, try the items sold in reputable pastry shops in Seminole County. Start with the area’s famous egg nog cupcakes, then try other popular delicacies.

The Elvis

What comes to mind when you hear Elvis? Sparkly jumpsuits, a sassy smile, and fantastic talent sound about right. That may be so if you haven’t tried the Elvis dessert, a favorite for many Seminole County residents and visitors.

The Elvis is a fluffy but crispy Belgian-style waffle that combines elements like caramelized bruleed bananas, raspberries, praline crunch topping, and peanut butter to give you an offer a mind-blowing treat.

Ice Cream

Nothing beats having an ice cream dessert after a hot dinner or other meal. And there’s much to love about these treats. First, they come in different flavors, so you won’t have to worry about peaking goodies every other day.

The ice creams in Seminole County are something to behold, especially fall and summer season flavors.

Rum Cakes

Most people love getting buzzed now and then. If you belong in this category, here’s something you try: rum cakes. As the name suggests, these cakes contain one not-so-secret ingredient- rum. Couple that with unique flavors and crunchy toppings, and you have a perfect dessert for a fun night.

To enjoy the best rum cakes in Seminole County, try the treats sold by dessert shops that rely on age-old recipes and promise unique experiences.

What’s Next?

Buying and improving or renovating a home in Seminole County, Florida is easier now than ever. All you need is an FHA 203k loan and a good project idea.

We’ve done our part; you now know all there’s to know about the Section 203k loan program, including types, eligibility criteria, and how to apply. The ball’s now in your court. We wish you lots of luck in your application and home improvement projects.

With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.

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