203(k) Loan


What is a 203(k) Loan?

The FHA 203(k) loan lets you purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the lower of the projected market value following repairs or purchase price plus renovation costs.

Benefits of a 203(k) Loan

  • 203(k) loans are designed to improve, update, and modernize the home.

  • The loan enables you to purchase foreclosure properties that require repairs.

  • You can purchase a home that does not require repairs and finance the cost of “modernization” or cosmetic repairs.

  • The loan allows for 1-4 unit dwellings, including condominiums.

Is a 203(k) Loan the right loan for me?

Who qualifies:

  • A minimum down payment of 3.5%

  • A credit score of 640 or higher

  • You currently have no other FHA loans

  • You DO NOT have to be a first-time buyer

Omega Smart Tips

*Where zoning allows, a 203(k) loan can be used to convert a single family dwelling to 2-4 units and vice versa.

Up to six months of PITI (principal, interest, tax, and insurance) payments can be financed to assist those who would otherwise be required to make double-housing payments. A consultant will determine the number of months house will be uninhabitable for the financing of payments.*


Buyers who purchased a property with cash can use the 203(k) program to complete repairs/ modernization and replenish funds used at the time of purchase. The mortgage must close within 6 months of a cash purchase.
The loan can be used for a complete reconstruction of a home on its original foundation.

Properties in “below-average” condition can be upgraded through repairs and maintenance (i.e., new roof, fix broken windows, and lead paint abatement). Increase square footage by building an addition, building a second floor or finishing a basement or attic space.

Take The First Step
Get Pre-Qualified Today!

Visit our Office

Residential Division

Multi-State Direct Endorsement Lender

1185 Morris Ave. Union, NJ 07083

Office #: (908) 933-0253*

Fax #: (908) 666-0266*

*not for use by New York borrowers

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Our team takes pride in dependability and accessibility. Whether it's a purchase or refinance, you are working with highly skilled professionals that strive for outstanding customer service. When you are ready to begin the mortgage lending process, we will be with you every step of the way to make sure that your loan closes quickly and smoothly.

Licensing:  New Jersey (9930047), New York (B500993), Pennsylvania (33116), Florida (MLD1382)

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*This site is not authorized by the New York State Department of Financial Services. No Mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.*

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