The FHA 203k loan may be a great tool for you to use.
FHA 203k Loan
Can you do work around the house? Do you want to buy a house that needs a lot of work and make it into your dream house? If you’re handy, this is a great idea. However, there may be a speed bump in the way. Many people in your situation can come up with a down payment and get the mortgage to buy the home. However, saving both the down payment and the funds to do the necessary upgrades is a challenge.
How Can You Finance This?
The solution may be the FHA 203k loan. This loan was created to help buyers who want to buy a home with the idea of fixing it up for either a flip or for their own home. Let me explain how this federal government backed loan works.
Let’s assume, as an example, that you found the home you want to buy. However, it needs a new kitchen and new bathrooms. The FHA 203k loan will provide you the money to buy the home. In addition, the necessary funds to do the renovations will also be provided. As each step in the renovation is completed, the necessary funds will be dispersed.
The FHA 203k loan also is available for a refinance, and works in a similar fashion for a home that you already own.
What Work Can You Do?
What types of repairs or alterations will the FHA 203k provide funding for? You could this financing to add a deck, add a patio, put siding on the house or even add an addition. Inside, you can replace flooring, repair plumbing, bathroom remodels, kitchen remodels, install new heating and air conditioning systems and much more.
Can you use this loan to put it in pool? Sorry, that’s not something allowed from the FHA 203k loan.
Bottom line
With the 203k loan, you can either purchase or refinance a property.Additionally, it will provide the money to make the necessary repairs to upgrade the home. Since it’s an FHA loan, there are restrictions as to how much you can borrow. You can use the funds to pay for materials if you do the work yourself, but there will be inspections. However, any contractors you hire to do the work must be approved contractors. To learn more about the FHA 203k loan, speak with your mortgage professional.
When you’re ready to either buy or sell a home, please contact us. Would you like to search for a home in other Monmouth County towns?
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