Mortgage That Pays For Remodeling With A Purchase Of A Home
The FHA 203K Loan can help you buy and renovate your new fixer-upper.
With the FHA 203k loan a borrower can make improvements and have home ownership in one loan. These loans are offered through the Federal Housing Adminstration, FHA and can keep your rate low. Rates for these loans are competitive while they allow you to buy a fixer-upper that conventional loans would not provide the funds to make the improvements.
How much money can a homeowner borrow on top of the loan for a FHA 203K loan?
This loan permits buyers to finance up to $35,000 into their loan for improvements, property repairs, room additions, new kitchen, bathrooms, etc. You can make your new home move in ready or ready for a sale.
How can I qualify for the FHA 203k loan?
In addtition to proof of income, proof of assets and credit card report; the borrower has to have a home inspection, detailed proposal with cost estimates for each repair.
What are the benefits?
- Smaller down payment. Can be as low as 3.5%
- Less than perfect credit score
- The terms can be easier to quailfy
- More protection
What to expect?
- FHA 203K loan interest rate is slightly higher due to the risk to the lender.
- Closing can take up to 90 days.
- Not all the lenders offer FHA 203K loan
- There is more paperwork involved
HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards.
Are you looking to buy a home in Chicago, Chicago North Shore & Chicago Norhwest suburbs, need help finding a lender or a contractor with FHA 203K loan experience?
Phone or Text 847-878-2588
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