Here are some of the most common scenarios for using a 203(k) loan. We've also included some great before and after photos!

Older House, With New Amenities
You want to buy a home in an older neighborhood because you love the larger yards, and the tree-lined streets. You like being in the heart of the city, but do not like the outdated carpet, bathrooms and kitchen. 203(k) to the rescue! A 203(k) loan can purchase and renovate a home all in one loan. You can purchase the home, and include additional monies to replace the carpet with new hardwood floors, remodel both bathrooms, and give that kitchen a modernized face lift.

Bargain Shopper
You want to purchase a foreclosure property, but the house is obviously in need of some major repairs because it has been vacant for some time. You'd like to patch some drywall, replace the HVAC system, and replace some broken windows. And while you're in there making some repairs, you would like to go ahead and upgrade this home. The 203(k) loan allows you to replace those old appliances with some new ones, get a fresh coat of paint for the inside and out, and a new deck for the back of the house.

Need More Room
You've found the right house but it only has 2 bedrooms and you really need a three-bedroom home. 203(k) to the rescue! A 203(k) loan allows a homebuyer to purchase a home and include money to build an addition. This 2 bedroom/1 bathroom home can become a 3 bedroom/2 bathroom home. And while you are at it, include money for landscaping and a fresh coat of paint all around.

Historic Home Lover
You really want to own a beautiful historic home. Purchasing one that has already been renovated can be expensive — or you would love the opportunity to renovate a home yourself. A 203(k) loan allows a homebuyer to purchase an older home, and renovate it up to historic standards. A beautiful Victorian, a Craftsman-style diamond in the rough, or a very hip and cool row home — the renovating can be as little as cosmetic upgrades, or as extensive as gutting the home and rebuilding it back to its original beauty.

Mixed Use and Multi-Use Properties
A 203(k) loan can be used to purchase a building that has a mix of commercial and residential space, multiple residential units, or both. The loan can be used to purchase the property, include additional money for renovations, and have an awesome money-making result. It is only for the owner-occupied borrower, which is one who intends to occupy one of the residential units. One of the many perks is rental income can be used to help qualify the borrower. What a great first-time purchase for a first time buyer.