The Full 203k permits homebuyers to finance unlimited amount for repairs into their mortgage to purchase and improve or upgrade the home before move-in or to refinance an existing mortgage and repair cost for repairs or improvements to the home. The rehabilitation cost although unlimited cannot exceed the after improved value of the home including the sales price.
Ex. Sales price + rehabilitation cost can not to exceed the after improve value of the home.
The extent of the rehabilitation covered by 203k loan may range from relatively minor (though exceeding $5000 in cost) to virtual major reconstruction. It can also cover the conversion of a property of any size to a one- to four- unit structure. The types of improvements that borrower may make using 203k financing include: