What is the minimum down payment for a 203k loan?

A full FHA 203k loan is a very involved and complicated process, and you need to be sure you are working with a loan originator who is experienced in them and knows the process. The down payment requirement is essentially the same as a regular FHA loan at 3.5% but you also have to factor in the repair escrow account.

Take the estimated dollar amount of the repairs and add 10%, and then add the purchase price of the home. Now times that by 3.5%.. That's the minimum down payment. ($30K repairs + $3K= $33K + $100K sale price = $133K x 3.5% = $4655 Down) Keep in mind that with 203K loans, if there are major repairs, you will have an FHA consultant, and all the work must be done by licensed contractors... so your estimate of repairs might be greatly lower than the actual costs once you bring in the professionals.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Stonegate Mortgage specializes in both FHA and Conventional renovation loans. The minimum down-payment for a FHA 203k renovation loan is 3.5% of the purchase price, renovation cost and 10% reserve. They are not that cumbersome when you know what you are doing. Most lenders/brokers will shy away from them because they don't know much about them. I am not licensed in Virginia, but if you want to contact our licensed advisor in your area, let me know. Hope this helps.

Although the actual calculation is somewhat complicated, it is essentially 3.5% of the purchase price plus repair costs. If the "As Finished" value does not support the total amount of the project, then more down may be required. You should start working with a Certified 203k specialist early in the process to make sure everything is done correctly. 203ks are easy if you know what you are doing, but not every originator does. Make sure you are using a Mortgage Banker/Broker that has ample experience. Here at Nova Home Loans, we have our own Renovation Division and Loan Originators are required to pass a certification exam before being given permission to originate them. You want a firm like us in your corner to make sure your project goes as smoothly as possible. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

with a fha 203 k loan, there is a standard repairs that have to be factored in, and you need to hire a contractor for the bids... how much estimate is the repairs?? linda yourloanparnterforlife@live.com

3.5% of purchase plus rehab

What everyone else said. There are also some federal agencies that can assist in the down payment, and it may also be a gift from a family member