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203k REHAB RENOVATION LOAN

THE BEST GOVERNMENT LOAN PROGRAM THAT ALLOWS YOU TO BUY A

HOME IN NEED OF REPAIRS OR UPDATING AND FINANCE THE REHAB COSTS!

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The FHA 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.

 

  1.   What is 203k LOAN?

This is a government insured loan that allows for the purchase of a home plus the costs for repairs and/or renovations OR to refinance an existing home for the purpose of remodels or improvements.

 

 2.     What is the primary benefit of this program

It is a one time easy loan closing with low interest rates that allows financing based on the after improved value.

 

 3.    How does the program work?

Borrowers identify a home they like in need of repairs or upgrades. The buyer determines the list of improvements and schedules an inspection with a 203k cost consultant. The cost consultant prepares estimates for the repairs and the buyer chooses contractors they want to perform the work. An appraiser appraises the home based on the “After Improved Value” and then the loan is determined based on the after improved value. The loan closes and the work is started.

 

 4.   What are the Program Features?

Seller concessions up to 6% to cover closing costs

Very attractive 30 Year Fixed rates 

640 Mid Credit Score

No buyer cash contribution required, gift funds allowed

No cash reserve requirements

 

5.    Are there any restrictions?

The property must be owner occupied

Loan limit must comply with FHA limits

 

6.    What type of property’s  are allowed?

One to Four family units

Condos (FHA approved)

 

7.    Is this program only for First-time buyers?

No.  The 203k loan is available for all homebuyers and for current home owners.     

 

 

So if you found the almost perfect home, now you can make it your perfect home.

I'M READY. WHAT MY NEXT STEP? To find out if you qualify for a 203K loan, please contact us at 610-291-6415 or apply right on line thru the secure and protected online application.

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