203(k) Rehabilitation/Renovation Loans
In this article we will explain a couple of different types of rehabilitation/renovation mortgages and why they might be a good choice for that TLC property you were thinking about buying or for your current property that you're thinking about refinancing.
FHA 203(k) Home Loans*
An FHA 203(k) is a renovation/rehabilitation home loan that can help you purchase or refinance a home that might be in need of repairs or a renovation. In addition to the cost of the home, the loan also covers the cost of qualified repairs. FHA 203(k) home loans are offered by Federal Housing Administration (FHA) approved lenders such as Nationwide Mortgage Bankers, Inc. They're also insured by the U.S. Department of Housing and Urban Development (HUD).
What Are The Benefits of a FHA 203(k) Home Loan?*
Buying a home that needs repairs is usually a complex and costly process since repairs can quickly drain your savings. An FHA 203(k) loan can save you time and money because it combines the purchase cost and the cost of the repairs into one fixed rate or adjustable rate mortgage.
With this type of loan, you may benefit from costs associated with repairs and modernization as compared to financing repairs through other methods like your savings, investments, lines of credit, credit cards or personal loans. Home improvements may also increase home value of your home and may make it easier to sell in the future. However, it's important to keep in mind that more parties and steps are involved with FHA 203(k) loans, including appraisers, consultants, contractors, and inspectors. Additional costs may apply.
✔ 1 to 4-unit attached and detached single family residences and planned unit developments.
✔ FHA-approved condos.
✔ Modular homes.
✖ New Construction.
✖ Manufactured Homes.
✖ Properties with non-conforming construction that cannot be remedied.
✖ Property Conversions.
*All applications are subject to credit, property and income approval. This is not a commitment to lend. Loan products are subject to change and may not be available in all cities or states. Speak to a licensed loan officer for more details about available loan products and full eligibility requirements.
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