How can you buy and remodel with one loan?
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.