San Diego FHA 203(k) Construction Mortgage Loan Pros and Cons (2019 | 2020 Update)

A San Diego FHA 203(k) Construction mortgage loan is a fantastic way to either finance your new home and/or refinance your existing FHA mortgage - and pay for construction costs. 

I wanted to compile a list of Pros and Cons so you can see for yourself what it's great (and not so great) for. 

Keep reading - and, if you feel like I've missed something reach out to me and I will happily add to the list. 


San Diego FHA 203(k) Construction Mortgage Loan Pros and Cons (2019 | 2020 Update)

A Streamlined 203(k) is Great for Small Renovations.

If you’re looking to fix up the property and not do a ton of work, then this loan is great.

It’s especially great for people that don’t have to go through all of the hoops that are necessary for the standard 203(k).

You’ll only be able to get up to $35,000 in funds, though with a streamlined loan.

However, the process for getting a standard 203(k) isn’t too terrible either, especially since it is already easier to qualify for an FHA loan than conventional loans.

Must Read: San Diego FHA 203(k) Construction Mortgage Loans - Rates, Terms, Limits...

It Can Help You Make Sure that Your Home Looks Great.

While the 203(k) loan has restrictions on the order in which you do renovations (with bringing the home up to code as the first concern), you will be able to use the loan to help improve the look of your house.

If there are improvements that need to be made to the house already, then you could use a small portion of the loan to fund the repainting of a room or replacing carpeting.

This loan is a really great way to improve your house and make it worth more.

Low Down Payment.

Just as with FHA mortgage loans, the down payment for a 203(k) is quite low.

You’ll be able to get a 3.5% down payment in many cases.

This means that you won’t be worried about too many money issues while you’re renovating your house.

San Diego Homeowners: We have qualified buyers desperately seeking to buy immediately and pay top dollar...

Easy to Qualify.

Just as with other FHA loans, you will be able to get a 203(k) loan without too many issues.

Your property has to qualify, but there are a variety of types of properties that could possibly qualify.

You don’t have to have a great credit score in order to get the 203(k). 


Blog Post Interrupt  How Is Debt to Income (DTI) Calculated?


Now Back to the Blog Post



San Diego FHA 203(k) Construction Mortgage Loan Pros and Cons (2019 | 2020 Update)

Not All Properties Qualify.

Although there’s a range of properties that can qualify for the loan, that doesn’t mean that every property will actually qualify after a consult.

What properties qualify depends on the kinds of changes that need to be made to a home.

You don’t have to have major issues in order to qualify for a 203(k), but if you’re only renovating cosmetically then you might find issues getting qualified for this loan.

You Have to Create a Proposal and Have Estimates for All Work.

In order to get work done with a 203(k), you will have to do some extra work and talk to a couple people in order to get the money out and the projects funded.

Need Money? Whether you are a first time home buyer, currently own, or have owned in the past – you can get money to cover your down payment and closing costs – see the best programs now...

Creating a proposal can be quite a bit of work for some people and can be daunting for people that are doing projects.

All of this extra work, even if you understand what you’re doing, can take time out of your day.

It could even possibly feel like a part-time job when you’re trying to get everything scheduled and approved in order to get your money.

You Have to Jump Through Hoops to Follow the Rules.

Besides creating a proposal and getting estimates, you will have to talk to multiple people in order to get the money out of your loan for the improvement.

You’ll have to speak with the FHA and a consultant and even me when you’re getting the loan set up.

This can be extremely daunting for some people.  

This will add to the feeling that this renovation is a part time job.

Apply Now: Why wait? Apply online 24/7 using our secure loan application, from any computer or device, and let Scott find the best loan options based on your needs – takes less than 10 minutes...

Insurance payments.

Like with other FHA loans, you’ll have to pay insurance with your loan.

You’ll have an upfront insurance payment and then insurance that continues for just as long as you have the loan.

With conventional loans, it’s easier to get out of insurance payments.

When it comes to FHA loans, the insurance is there to stay.

That extra little bit to your payment can be a little annoying to some people.

What do you think?

Leave me your thoughts below - or, call/text me at (760) 297-4539

Your 203(k) Insider, 


Get Your Fast and Free Rate Quote Now!

By clicking “Send” I/We agree by electronic signature as stated below: 1) To be contacted by telephone even if the telephone number appears on a State/National Do Not Call registry or any company’s Do Not Contact lists. 2) To this website’s Privacy Policy and Terms of Use.