203(k) Rehab Loans in Somerset, KY
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Thinking about buying a fixer-upper in Somerset or near Lake Cumberland? An FHA 203(k) rehab loan with Honor Home Loans lets you finance the home purchase and approved renovation costs in one mortgage. It is an efficient way to buy an as-is property and update it to your needs without taking out multiple loans or paying for repairs upfront.
Why 203(k) Rehab Loans Are a Smart Choice in Somerset, KY
Somerset and Pulaski County offer a mix of established neighborhoods, rural properties, and homes near Lake Cumberland that often benefit from updates or repairs. A 203(k) rehab loan helps buyers and homeowners finance those improvements in a structured way while keeping the financing simple. It can be especially useful in this area because:
- You can consider homes that need work, not just move-in-ready properties.
- You roll many renovation costs into a single mortgage with one monthly payment.
- You may be able to increase the long-term value of the home through strategic renovations.
- You avoid relying on separate high-interest credit cards, personal loans, or unsecured financing for repairs.
What an FHA 203(k) Loan Includes
An FHA 203(k) loan, insured by the Federal Housing Administration, allows you to finance the purchase or refinance of a home and the cost of approved renovations. It is designed for properties that need anything from cosmetic updates to major repairs.
There are two main versions:
- Standard 203(k): Used for larger projects such as structural repairs, additions, major system upgrades, or substantial remodeling.
- Limited 203(k): Intended for smaller, non-structural improvements like flooring, paint, windows, minor repairs, and cosmetic upgrades.
The renovation funds are held in an escrow account and released in stages as the work is completed and inspected. When the project is finished, you will have a renovated home financed in one mortgage with one monthly payment.
Who a 203(k) Loan Can Help in Somerset, KY
- Buyers interested in older homes or properties that need updating in Somerset or around Pulaski County.
- Homeowners who want to refinance and complete necessary repairs or modernization.
- First-time buyers looking for an affordable way to purchase and improve a home at the same time.
- Families planning to update a home before moving in, rather than living through long-term construction.
- Buyers who want to build equity by combining thoughtful renovations with Somerset’s growing housing market.
How a 203(k) Loan Works with Honor Home Loans in Somerset
- Identify a home and needed repairs. Choose a property that needs updates, or evaluate renovations for a home you already own.
- Talk with our Somerset mortgage team. We review your goals, explain the 203(k) guidelines, and help you determine which version of the program fits your situation.
- Gather contractor bids and a renovation plan. You obtain bids and a clear scope of work. For Standard 203(k) loans, a HUD-approved consultant may be required.
- Underwriting evaluates the after-improvement value. Your loan is reviewed based on your qualifications and the projected value of the home once renovations are complete.
- Close on your loan and start renovations. After closing, renovation funds are placed in escrow and released in stages as each phase of work is finished.
- Enjoy your updated Somerset home. When the work is complete, you have a renovated property financed under one mortgage with one predictable monthly payment.
Renovation Projects Often Completed with 203(k) Loans
- Kitchen remodels and layout improvements
- Bathroom updates and fixture replacements
- New flooring, interior paint, and lighting upgrades
- Roof replacement and exterior repairs
- HVAC, electrical, and plumbing system improvements
- Energy-efficient windows and insulation upgrades
- Structural repairs or room additions, where allowed by the program
Disclaimer: The content on this page is based on regulations and information available at the time of posting, but may change without our knowledge. This content is intended for informational purposes only and does not constitute any legal or binding agreement.
Get Your Complimentary 203(k) Loan Consultation in Somerset, KY
If you are considering a fixer-upper or planning renovations to a home you already own, our Somerset mortgage team can help you review your 203(k) options and choose a path that supports your goals.
Complete our easy 203(k) Loan Qualifier.
Explore personalized 203(k) loan options.
Compare renovation terms and estimated payments.
Choose the option that aligns with your long-term plans.
Why Somerset Homebuyers Trust Honor Home Loans
Homebuyers and homeowners across Somerset and Pulaski County look to our team for clear communication, practical guidance, and a smooth process from application to closing.
Bri is hands down THE best lender we could’ve asked for. We wish we could’ve closed with her but even when we couldn’t do that she went above & beyond to help us with anything she could. Would recommend her to everyone I know!
The amount of communication and guidance we got was great. Made our home-buying process easy and helped clarify what everything was whenever we had a question.
When we bought our first home back in 2014, we were referred to Bri and. We had an amazing experience with them that we decided to use her again when we bought our new home almost two months ago.
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