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7 crucial facts about FHA loans

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You can borrow cash for repairs
Extra cash available for repair © Mik Lav/Shutterstock.com

You can borrow cash for repairs

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The FHA has a special loan product for borrowers who need extra cash to make repairs to their homes. The chief advantage of this type of loan, called a 203(k), is that the loan amount is based not on the current appraised value of the home but on the projected value after the repairs are completed. A so-called "streamlined" 203(k) allows the borrower to finance up to $35,000 in nonstructural repairs, such as painting and replacing cabinets or fixtures.

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