Blogging Tulsa Real Estate: Great Location, But the House Needs Work? Consider an FHA 203k Loan.

Great Location, But the House Needs Work? Consider an FHA 203k Loan.


Great Location, But the House Needs Work?  Consider an FHA 203k Loan.

You found a home exactly where you want it to be. 

  • The location is great!
  • The lot is remarkable, but the house is too nice for a knock down.
  • It's too bad the house needs so much updating....
  • It's so convenient...  but too much work!
  • The land is almost worth more than the house... but not quite.
  • If only it were falling down... then we could bulldoze it and build a new one

 Sound familiar?  Have you ever had any of these conversations with your REALTOR®?


Perhaps you found a wonderful historic home and you want to renovate it with modern amenities.  What kind of financing should you look for?

Historic Oklahoma Farm House


Have you been told you cannot get a loan on a house because it needs too much work?

Have you been frustrated?

Have you been told that you'd have to have CASH to buy a particular house because you couldn't get a loan on it because of it's poor condition or lack of updating?

Don't give up!


  • who knows lenders in your market who can lend you money to rehab the house.
  • who can help you identify the kinds of loans you need to shop for
  • who can help you identify properties that may qualify for an FHA 203k mortgage loan
  • who understands the difference between a 203k regular and a 203k streamlined loan
  • who can help you connect with professionals to help plan the work to be done
    • architects
    • decorators
    • engineers
    • home inspectors
  • who can help you get bids from qualified vendors for repairs and will work with the lender in preparing documentation for the mortgage underwriters:
    • general contractors
    • foundation repair experts
    • roofers
    • framing carpenters
    • finish carpenters
    • drywall installers
    • plumbers
    • electricians
    • cabinet makers
    • painters
    • appliance installers
    • carpet and tile installers
    • wood floor refinishers and installers


The house must qualify for an FHA 203k Mortgage Loan.


Who is eligible for an FHA 203k Mortgage Loan?

  • Only owner-occupants and non-profits can get an FHA 203k loan
  • Investors are not eligible


How much can you borrow?

  • You can borrow money to purchase the property
  • You can borrow money to fix up the property -- up to 110% of the value of the home
  • There is a little padding to allow for cost over runs
  • You can get bids for appliances, wood stoves, fixtures, paint, carpeting, etc.


How does the process work?

  • Your REALTOR® will specify an FHA 203k mortgage loan in the purchase offer
  • Your REALTOR® will allow for a longer period of inspections, investigations, and reviews
  • Your REALTOR® will work with contractors and vendors to help them enter the property so that they can discuss ideas and plans with the buyer during the period of inspections, investigations, and reviews
  • If everyone decides to move forward, then the contractors and vendors work up their specifications
  • All bids must be turned into the lender so the lender will know how much to loan
  • Appraisals are done by the lender
  • Appraisals may have to be revised in order to estimate the value of the property after the remodeling has been completed.
  • The entire process takes about 45 to 90 days from origination to closing
  • The lender puts money in escrow at closing to be paid to vendors as work is completed
  • Work must be completed within 6 months after closing


FHA Loans are Assumable

  • Rates are low right now
  • It makes sense to borrow money to remodel now while money is cheap
  • You can remodel the home and live in it
  • When you are ready to sell in years to come, your house will be attractive to buyers because
    • you've remodeled it and it is beautiful
    • you will be marketing it at a low interest rate that can be assumed by qualified buyers when the interest rates are higher


Call or text me, Debbie Solano, at 918-724-8201.

If you are looking for a REALTOR® in or around Tulsa, Oklahoma, I can help you find a property and connect you with a mortgage lender who can do a 203k mortgage loan. 

I have helped buyers with both 203k streamlined and 203k regular mortgage loans.



Coldwell Banker Select, Realtors -- Land & Ranch Division
4408 S. Harvard Avenue
Tulsa, OK  74135

Office:  918-712-4473

Cell:  918-724-8201

FAX:  918-712-4310


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Comment balloon 6 commentsDebbie Durkee • November 12 2012 12:53PM


Great article that provides information on FHA 203k Mortgage Loan. Eligibility,how much one can borrow and the process of qualifying for it. Thanks Debbie and keep up the excellent work. Thumbs up!
Posted by Katerina Gasset, Get It Done For Me Virtual Services (Get It Done For Me Virtual Services ) over 7 years ago
Informative article that discusses the process of getting an FHA 203k Mortgage Loan Debbie. This will definitely come in handy as a reference for potential buyers out there.
Posted by Petra Norris, Realtor, Lakeland FL Homes for Sale (Lakeland Real Estate Group, Inc.) over 7 years ago
Well written blog Debbie. Thank you for sharing and keep up the good work.
Posted by Melissa Muse Wiggans, CRS, GRI, ABR - Real Estate Muses (Real Estate Muses) over 7 years ago
Debbie, thank you for a very good source of information about the FHA 203K Mortgage Loan. All the best  and keep up the good work.
Posted by Erika Rogers, St George Utah Real Estate & Relocation Specialist (Red Rock Real Estate ~ Southern Utah's Largest Independent Brokerage) over 7 years ago
Clear, precise and easy to understand post Debbie. Hope many of your avid readers were able to find this article informative and useful.
Posted by Waynette Hoover Araj, Connecting your Dreams with the Right Real Estate (Keller Williams Realty) over 7 years ago
Well presented blog Debbie that provides homeowners that information that they need about the FHA 203k Loan program. All the best and stay the mosyt reliable Tulsa, OK Real Estate Specialist.
Posted by Pat and Ed Okenica, Lake Oconee Ga Real Estate (DRAKE REALTY Lake Oconee Ga) over 7 years ago