Foxx Capital Funding, Inc.
Mortgage Brokers in Astoria, Queens, New York

203(k) Loan

What is a 203(k) Loan?

A 203(k) rehab loan allows you to combine the costs of property acquisition and renovations into a single mortgage loan. No construction loans, no second mortgages, and no home equity lines of credit. Just one simple mortgage. That’s it!

Whether purchasing or refinancing, our 203(k) program allows homeowners to make improvements to their home or condo while financing the cost of repairs into a single mortgage. The loan is fully disbursed in one closing before the repairs are made. The mortgage amount for these loans is based on the projected value of the property when the work is completed.

The best values in real estate are homes that need repair, so it is usually a good idea to take advantage of those bargains. Maybe you have seen your dream home needing a few repairs and you thought it was out of your reach. Not anymore!


The 203(k) loan is a great choice for home improvements whether you are renovating your current home or purchasing a new home that needs renovations. Below are some of the advantages:

  • With just one loan you can finance the purchase of a fixer-upper property, including the cost of repairs and construction. The 203k is actually three loans in one: Purchase loan, Permanent Financing loan, and Construction

  • Flexible income and debt ratios

  • Flexible credit qualifying

  • As little as 3% down payment, even for multi-family properties

  • Borrower can do some of their own home improvements

  • Borrower can finance up to 6 months mortgage payments into the loan

  • The loan closes with the property in “as is” condition. All repair funds are held in an interest earning trust account (maximum of 5 draw checks issued)

  • Non-profit organizations can purchase properties with a 2% down payment

  • Special program for disabled homebuyers (or disabled family members). All costs for retrofitting the home to meet the needs of disabled persons can be financed in the 203(k) loan

What property is eligible?

By now you’ve read quite a bit of information about 203(k)
loans, but which types of properties are eligible? Look on
further. We have that information for you below. As always,
if you have a question regarding the information below, please contact us.

One to Four Family Properties:

  • All types. Must be owner-occupied

  • One to four family residential homes, which have been completed for at least one year

  • Homes that have been demolished or razed as part of the rehabilitation process are eligible as long as the existing foundation system remains intact

  • Any property that the buyer wishes to convert. (ie. a single family property into a two to four family property, or a two to four family property into a single family property, etc.)


  • All improvements are required to be inside the condo

  • Must be owner-occupied

Mixed-Use Properties:

  • All improvements are required to be made to residential portion only

  • Must be owner-occupied

  • Storefronts are eligible

Miscellaneous Guidelines:

  • All properties must be at least one year old

  • New construction is not eligible

  • Commercial properties are not eligible

  • Required $5,000 minimum renovation cost

Below are examples of eligible improvements/repairs

NOTE: Required Minimum of $5,000.00 in

  • Remodel Kitchens, Bathrooms, etc.

  • Room Additions

  • New Garage

  • Foundation Repair

  • Flooring, Tiling, Carpeting

  • Termite Damage or Treatment

  • Roofing Repair/Replacement

  • Structural Alteration/Repair

  • Heating/Air Conditioning

  • Electrical Systems

  • Handicap Access

  • New Siding

  • Plumbing

  • Painting

  • New Well

  • Wallpaper

  • Sewer Connection

  • Built-in Appliances

  • Major Landscape Work

  • Paint, Lead Paint Removal

  • Fencing, Patios, Decks, Terraces

  • Insulation/Energy Improvements

For more details on this program, please contact us.