The purchase of a house that needs repair is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased.
A new FHA-insured mortgage, called the 203(k) loan, permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. In most cases, home improvements usually include painting walls, modernizing the kitchen, upgrading bathrooms, and installing modern shed designs in the backyard studio.
This program allows you to purchase or refinance a property and include the cost of repairs and improvements into the loan. The downpayment requirement is approximately 3.5% of the acquisition and repair costs of the property.
The 203(k) loan includes the following steps: Continue reading “New FHA Loan Offers $35,000 to Fix-Up Home Before Moving In”