I’m sure you’ve seen the shows on HGTV where the hosts are buying a home and then renovating it to a beautiful home. I often have people scratching their heads on how these people are actually buying a home and fixing it up. Well, most mortgage loan programs are just focused on buying a home. We have a program that allows our borrowers to buy the home, as well as add the renovation costs into the loan! Plus, most mortgage programs require a property to be in sound condition with no structural defects or required repairs. Not the 203k Home Renovation Loan! It's made for homes needing anything from a light spruce up to major repairs, improvements or new additions. Here are a few important things to know about a 203k Home Renovation Loan:
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. Our phone number is 847-840-8117, email is MagieraTeam@Leader1.com, or you can visit our website at www.MagieraMortgage.com