Like all FHA loans, the 203k has a low down payment requirement. The loan requires you to put down 3.5% of the total purchase price plus repair costs and required contingency (“buffer”) costs.
For instance, a $200,000 home with $30,000 in repair and contingency costs would require a down payment of $8,050 (3.5% of $230,000).
Keep in mind that closing costs apply and are in addition to the down payment. Closing costs for a 203k loan are typically between 3% to 6% of the purchase price.
It will likely take 60 days or more to close a 203k loan, whereas a typical FHA loan might take 30-45 days. There is more paperwork involved with a 203k, plus a lot of back and forth with your contractor to get the final bids. Don’t expect to close a 203k loan in 30 days or less.