Most mortgage loan programs require a property to be in sound condition with no structural defects or required repairs.
Not the 203k. It’s made for homes needing anything from a light spruce up to major repairs, improvements or new additions.
Combine Purchase and Improvements – The 203k loan covers your purchase price and the cost of improvements. The proposed work must be supported by a “value upon completion” appraisal. You can save by financing renovation costs into the original mortgage rather than racking up credit card bills or dipping into reserve savings later.
Create the Perfect House – If you’re having trouble finding the right house in the right location, the 203k is the perfect solution. Just take a well located home, add your own personalization and improvements, and make it “just right.”
Determine Your Eligibility – As with the regular FHA program, credit requirements vary yet can be more flexible than with conventional financing. There are no income limits or first time buyer status requirements.
Minimize Out of Pocket Costs – The 203k can be obtained with as little as a 3.5% down payment. Gifts can be used, sellers can contribute toward closing or costs can be rolled into the loan amount right along with your pre-paid taxes and insurance.
Applying for the 203k requires more work than other loans, but given all the advantages, it is a great option to consider.
If you want to learn more or already think a 203k is right for you, reach out, and we’ll work together to get you started today.
What is a 203k loan and why should you be interested?
The FHA 203k loan program provides funds for the purchase as well as the renovation expenses, all packaged into a single mortgage loan. If you found the perfect house, and can’t afford its repairs, the 203k loan option could be the perfect solution.
