Gilpin's 203k Mortgage Program

What is a 203k Mortgage?
A 203k mortgage helps eligible buyers finance the purchase of a home and pay for eligible home improvements*, all with a single mortgage loan.

What kind of home improvements can be financed with a 203k Mortgage?
Each project is subject to review, however Gilpin generally will provide financing for improvements as long as they’re not structural in nature and don’t involve the repair or replacement of well or septic systems. We’re looking to help buyers finance houses that are in good shape but might need a quick fix or two.

Does a 203k Mortgage have a limit on how much repair money I can get?
Yes, Gilpin's 203k repair money tops out at $35,000.

Is a 203k mortgage a “second mortgage”?
No, repair/improvement money of up to $35,000 is added to money used to buy the house. There’s only one monthly mortgage payment.

With 203k mortgage financing can I do the work myself?
Sorry, but the Gilpin 203k only provides financing for repairs to be completed by licensed, third party contractors.

Can I use contractors I select myself?
Yes, you pick the contractor yourself. We only require that they be licensed and provide a Federal Employer Identification Number.

Okay, what’s the process? How do I get started?

First, get pre-qualified.
Call 302-656-5400 or e-mail us.
We’ll figure out how much you qualify for.
Find a house you like.
Figure out what improvements you’d like to make.
Get contractor proposals.
THEN, negotiate with the seller.

Why is the last step negotiating with the seller?
Buying a house requiring repair or improvements is different than just buying. What you’re willing to pay for the house may be dependent upon the cost of the improvements. So, finding out that the $5000 new roof is going to cost $10,000 instead can affect how much you’re willing to pay for the house itself.

203k Mortgage calculation example?

House Price	$150,000
+ Improvements	8,000 (can’t be more than $35,000)
= Total Expense	$158,000
X	.97465
= Total Loan	$153,994.70

*203k Improvements: Appliances, paint, new heater, roof/gutters/ siding, carpet and other flooring, countertops, remodeled bath, lighting, energy efficiency. Use your imagination!

Equal Housing Lender