Chris Luis, My Favorite Mortgage Broker 
"I work for you, not the banks." 
NMLS 888571

CLuisMortgages. LLC             
MBR 1575, NMLS 1159714                                       
t: 941-219-4381
f: 800.718.1862
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Loan Programs - 203K Rehabs
This is how 203K Rehab Loan works (it is an FHA Loan) 

1.Purchase Price = $100,000

2.Rehab Estimate = $10,000

3.Total Price = $110,000

4.Your down payment: 

  • 3.5% of $100,000 – the purchase price or $3,500
  • 3.5% of $10,000 – the rehab amount or $350

5.Lender finances the rest.

The lender approves both the home purchase and the purchase price together. 

You close on your loan. 

THEN after you own the home, the Rehab work begins. 

Here is Who Does What:  

  • Realtor: Gets real estate contract with Purchase Price – do not worry     about the Rehab Amount; specify it is a 203K Rehab Loan being   applied.  

  • Home-buyer: Gets a licensed contractor for a WRITTEN ESTIMATE on the Rehab Amount 

  • Mortgage Broker: Puts loan package together. And all the paperwork


  •   Get licensed contractor to give written estimate for repair work. 

  •  Try for 203K Contractor or on who accepts 203K Rehab work. 

  •   Important that the contractor be experienced or know 203 K Rehabs. 

What is Hard About it

  • May need as many as 4 separate inspections ($$)

  • Takes about 2-3 weeks longer to close

  • Lots more paperwork

Most anything can be included in the loan, except for a pool or room additions. 

Most lenders offer 203K Loans. But few do them well. They require more paperwork, but these are great deal.