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FHA 203k Loan in Walton County, Florida

Are you looking for a rehab loan? If so, you will want to consider the FHA 203K Loan. This flexible home loan program offers many benefits, including access to HUD advisors, who can help guide you through the entire process. You may also be able to get into a home that would otherwise not have qualified for financing at all!

FHA 203k Loan in Walton County, Florida

An FHA 203k loan is a program that allows borrowers to finance their home renovations and repairs. This type of loan can be used in conjunction with your standard mortgage, or it can be used on its own. If you're interested in purchasing a new home, the FHA 203k loan benefits buyers and sellers alike!

What is a 203K loan?

A 203k loan is a loan that allows you to finance the cost of rehabilitating your property, along with the purchase price.

The FHA version of this loan program has been around since 1968, but it wasn't until 1988 that the Department of Housing and Urban Development (HUD) created what we now know as the FHA 203k loan program.

What is an FHA 203k?

An FHA 203k loan is a loan that allows you to buy a home in need of repair, also known as a "fixer-upper." The FHA 203k loan was created so first-time home buyers who want to make home improvements can still qualify for an FHA mortgage.

For example, if you buy a fixer-upper and want to renovate the bathroom, kitchen, roof, or any other major renovation project, this loan will allow you to do so without paying cash.

Who can use a 203k loan?

Anyone who owns their own home can apply for an FHA 203k loan. You don't need good credit scores or enough cash saved up to cover the cost of the repairs. However, some income requirements vary based on where you live and whether or not you have other loans (like mortgages) on your property currently.

You'll need to pay 3 percent down when applying for this type of financing, which may seem like a lot but helps ensure you can repay the loan.

The FHA 203k standard loan

The FHA 203k standard loan allows you to finance the cost of repairs, improvements, and additions to your home. The maximum repair budget can exceed $35,000, and the minimum repair budget is $5,000. The maximum loan term is 30 years, and the minimum loan term is 15 years.

The borrower must have a good credit history and income to qualify for this FHA mortgage program. HUD sets no income limits on this financing option; however, specific funding fees may apply if your income falls within certain specified ranges.

FHA 203K Standard projects

FHA 203k standard projects are for structural repairs and renovations of a property.

  • New windows can increase the light in your home, which is vital if you have children or pets that need to go outside during the day.

  • Fixing the foundation will stabilize your house, so it doesn't shift around when there are strong winds or other weather conditions, as well as keep it from tilting on one side due to uneven weight distribution throughout its structure.

  • Finishing off an attic or basement area can add usable square footage to a home while also increasing its value by making it more attractive to potential buyers looking for appropriate-sized houses in the future (and thus increasing demand).

  • Building on to an existing room, such as adding another bedroom, bathroom, or kitchenette, gives homeowners who want more space options without buying new land elsewhere in Walton County, Florida!

HUD consultant

With an FHA 203k Standard Loan, you will also have access to a HUD consultant who will be your guide throughout the process.

Their job is to help you find the right contractor, ensure all of your property repairs are done according to HUD guidelines, and assist you with closing the property once everything has been completed.

The FHA 203k limited loan

The FHA 203k limited loan is a program that helps you to repair or replace your home's major systems and components. This loan may be used if you wish to make repairs beyond the minimum standards set by the county in which you reside, including improvements such as:

  • Kitchen Remodeling.

  • Bathroom remodeling (new tub, shower enclosure, toilet).

  • Roofing repairs/replacement with asphalt shingle roofing product or equivalent.

  • Floor replacement - wood, laminate, or tile floors only; carpet not acceptable.

If your maximum repair budget falls below $35,000 and your minimum repair budget is lower than $50000, this loan may be for you! You will not require a HUD consultant if using this program but need an inspection by an FHA-approved appraiser before closing the home purchase contract.

FHA 203K Limited projects

FHA 203K Limited is a limited loan that allows homeowners to make cosmetic repairs, renovations, and alterations to the home but not any structural changes. You can use this loan for exterior remodelings such as siding and windows, interior remodelings such as flooring and countertops, or mechanical systems like HVAC.

Here are a few of the possible improvements you can make with an FHA 203k:

  • Refinish wood floors.

  • Paint your walls with new fresh coats of paint.

  • Upgrade your kitchen appliances (ex: refrigerator, stove).

  • Replace counters with more durable materials such as granite or marble.

How the FHA 203K loan can help you improve home value in Walton County, Florida

The value of your home is determined by several factors, including location and size. But several home improvements can add to its value.

  • Safety - A safer home means more peace of mind for you and your family. You might consider adding a security system or renovating your garage door opener so it's more secure.

  • Curb appeal - If you want to attract buyers and sell your home faster, make sure it looks great from the street. This means cleaning up the exterior and ensuring everything is in good repair — windows, siding, roofing, paint, and landscaping.

  • Energy efficiency - More than ever before, people want to live in homes that are energy efficient because they're less expensive to heat or cool and use less electricity. Adding insulation or upgrading appliances can help you save on utility bills while making your home more valuable.

  • Accessibility - You may not be thinking about this now, but if you have aging parents who live with you now or will do so in the future, there are ways to make their stay easier on everyone involved — by adding ramps or other accessibility features like grab bars in the bathroom or wheelchair-accessible showers and toilets.

How home renovations and repairs improve home equity

Home improvements and repairs can increase your home's value, making it easier to sell or refinance when you're ready to move on.

If you're planning to stay in your home for the long haul, a remodel can give you a great return on investment.


The kitchen is one of the most important rooms in any home. If you have an outdated or outdated kitchen, it may be hard to sell your house or get top dollar for it.

There are many different ways of updating your kitchen while keeping costs down. You can add new cabinets, countertops, and appliances without paying thousands of dollars for them upfront.


While upgrading the bathroom may not seem like a big deal at first glance, several things can be done to make it more attractive for potential buyers.

One option is replacing old fixtures with updated ones that match the style of the rest of the house. Another option is installing new flooring to make the room look larger.

Exterior siding

Your house's exterior is the first thing potential buyers see, so you want it to look as good as possible. Asphalt shingles are the most common type of roofing material, but they cost less than other options like metal and slate shingles.

The advantage of asphalt shingles is that they're durable and easy to install. If you're looking for something more permanent, consider metal or vinyl siding.

Windows and doors

New windows can make a big difference in your home's appearance and energy efficiency. Choose ones with energy-efficient glass and frames made from sustainable materials such as wood or fiberglass.

If replacing an old door, upgrade to a new one with an extra-secure deadbolt lock system to keep intruders out.


When people think about home renovations, they usually consider interior changes like painting walls or updating appliances.

But outdoor landscaping makes a difference, too — especially if you have a yard visible from the street or driveway. Consider adding new plants or flowers or building a garden bed around your property.

Model residential house and coins to purchase home and renovate

FHA 203K Loan requirements in Walton County, Florida

FHA 203K loans are designed to enable home buyers to purchase a house that needs repairs. The loan allows you to finance the cost of renovations, including repair, renovation, and improvement (RRI) costs up to $35,000 and certain other eligible costs such as closing costs.

For an FHA 203K loan applicant to qualify for this type of mortgage financing, they must meet all requirements set forth by the Federal Housing Administration (FHA). They include:

  • A minimum credit score of 500 or above.

  • A minimum debt-to-income ratio of 43% or lower.

  • The purchase price at or below 113 percent of the property's appraised value.

In general, there are two ways to buy a house or condo using an FHA 203k Loan:

  • You can use it to purchase a home in need of significant repairs ("fixer-upper" property). In this case, the borrower would use their own money for the down payment but then take out an additional loan from the lender to cover all costs associated with renovating and repairing their new home. Once renovation work has been completed, this second mortgage is paid off and becomes part of your equity in your newly improved property; or

  • You can use it as part of an "asset acquisition strategy" that combines purchasing/rehabbing distressed properties – thus creating income streams while increasing financial security over time!

Qualify for an FHA 203k Loan in Walton County, Florida

The FHA 203k Loan is an excellent option for homebuyers looking to purchase a home in Walton County, Florida. The FHA 203k Loan has flexible eligibility requirements, and it's a great way to finance the repairs or updates you may need to make on your home.

To qualify for an FHA 203k Loan, you must meet the following requirements:

  • You must have a steady job.

  • You must have good credit.

  • You need enough cash for a 3.5% down payment (the amount of money used as collateral).

  • Your monthly mortgage payments must be affordable.

The FHA 203K Loan application process in Walton County, Florida

The FHA 203k rehab loan application process is not as complicated as it seems, but there are some steps you need to take before applying.

Fill out the FHA 203k loan application and choose a lender

You can find an approved lender on the HUD website or local realtors and lenders in your area. You will need to fill out an application and provide documentation of income, assets, and liabilities.

The loan officer will put together a file for your loan approval

The lender will review your paperwork immediately and ensure everything is in order before moving forward with the approval process.

They will also check with their underwriter to ensure they have enough funds to approve your loan amount request!

Apply for homeowners insurance

You'll need to get homeowners insurance before starting any homework. You can get a quote online at websites like or through the Housing and Urban Development Department's online guide to getting FHA-insured home loans.

The contractor will draw up plans for the work to be done

They will also provide estimates of how much it will cost, including labor and materials. These estimates are important because they will influence how much money you need to pay for your mortgage while you're waiting for the finished product (which is why you should wait until after all major repairs are complete before refinancing).

Submit plans, contracts, and other documents to the lender to begin the approval process

This includes everything from architectural drawings showing what needs to be repaired or replaced in your home to receipts proving where you bought materials for the job (if possible).

The lender may also ask for proof that a licensed contractor is doing the work; if this is true, they must sign off on all contracts before submitting them as part of your loan package.

The top 5 desserts in Walton County, Florida

In a county known for its excellent culinary scene, it's hard to pick just five favorite desserts. But we tried! If you're looking for a sweet treat, here are the best places to go in Walton County, Florida:

Chocolate Chip Cookie Skillet at Hurricane Oyster Bar & Grill

It's not every day you get to order a dessert off the menu of an oyster bar, but this one is worth it. This chocolate chip cookie skillet comes with vanilla ice cream and whipped cream and can be shared by two people. It's only available on Saturdays from 10:30 am-3 pm or until it sells out.

Peanut Butter Pie at Funky Blues Shack - Gulf Breeze

Peanut Butter Pie is another favorite at Funk Blues Shack. The restaurant recently added the pie to its menu, but according to their Facebook page, they are still working out the kinks before returning it.

If you're lucky enough to find one, we recommend sharing it with another person — even if you're not a pecan pie or peanut butter fan. The combination is delicious!

Key Lime Pie at The Pickled Pig BBQ

The key lime pie here is rich and creamy — just like key lime pie should be — without being too sweet or overpowering. This dessert is great if you want something simple that doesn't require too much thought!

TripAdvisor reviewers have named this Key lime pie one of the best pies in Walton County. It's made with real key lime juice, fresh whipped cream, and graham cracker crumbs for an authentic taste of Florida!

You can get your slice of this delicious dessert anytime during business hours: Monday through Saturday from 11 am to 10 pm and Sunday from 1 pm until 9 pm.

Pecan Pie at Marie's Bistro on 30A

Marie's Bistro is one of the most popular restaurants on 30A, and it's not hard to see why. The food is always fresh and delicious, with plenty of options for vegetarians and carnivores.

Pecan pie is a favorite dessert, with a homemade crust and plenty of sweetness from the pecans. You can get chocolate pecan pie if you're craving something more decadent.

Lava Cake at 30A Burger in Santa Rosa Beach

This burger joint has been open for less than a year but has already become a staple in downtown Santa Rosa Beach. Their burgers are made from local grass-fed beef and are served with your sides, including fries or sweet potato waffle fries.

Lava cake at 30A Burger is a gourmet version of molten chocolate cake with caramel sauce poured over the top before serving so that it oozes down onto vanilla ice cream when you cut into it. It's rich and delicious, so save room for it!


We hope you enjoyed learning about Walton County, Florida's FHA 203k Loan Program. It's a great loan product that can help you get the home of your dreams if you're willing to renovate it according to your need!

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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