Are you having a hard time finding a property in your price range? Have you considered a fixer-upper? If you find a house with potential on the lower end of your budget, an FHA 203K rehabilitation loan allows you to finance repairs and the house purchase in one loan. A bedroom addition, a family room extension, an upgraded kitchen and a bathroom remodel are a few of the options available to you with an FHA 203K rehabilitation loan.
Five Reasons to Consider FHA 203K Loan
- Turn an average home into a dream home. Qualifed homebuyers can improve less-than-perfect homes in desirable locations or address property shortcomings immediately without draining savings.
- Make the home your own – removing the previous owner’s style. Everyone has different tastes – you don’t have to live with the previous owner’s choices.
- Fix things the previous owner may have ignored – windows, roof repairs, etc.
- Get more house for the money. REOs and foreclosures are still a large part of the real estate inventory. Buyers can take advantage of reduced home prices.
- Rolling rehabilitation costs into the mortgage allows borrowers access to repair funds at lower rates.
FHA 203K Program Eligibility
- Down Payment – 3.5% of total amount of purchase plus costs of repairs – gift funds allowed
- Seller contributions – seller may contribute 6% of purchase prices toward closing cost and prepaids
- Purchase of owner occupied primary residence that have been completed for at least one year.