203k: More Than a Funny Name
It sounds a bit like your retirement fund, but a 203k has nothing to do with your retirement. At least not directly. The 203k from FHA is a home improvement loan homeowners can use to refinance and remodel, or home buyers can use to upgrade a fixer-upper they want. From required repairs from FHA to desired upgrades, a lot of home improvements are eligible for 203k financing.
If you'd like to spend 2 minutes with a national expert on renovation lending, the 203k specifiacally, you can watch our interview with Joe Daly "What is the 203k Loan." In short, the 203k loan covers home renovation, home improvements or the complete rehab of a house. It allows you to finance the repairs directly into the mortgage, so it's not a second mortgage or a line of credit.
Whether it's a short sale, foreclosure or bank owned home, the 203k can help finance your dream of buying a house. This home mortgage loan is backed by the government, and has been around since the late 1970's. The FHA program helps take care of communities with homes in deferred maintenance, in need of repair, or can be used if you just want some upgrades. Foreclosures and other repairs and renovations are covered by the 203k home improvement loan.
Several FHA 203k projects could help turn a fixer-upper into a dream home. Roof repair, flooring repacement, new windows, a deck or a kitchen remodel are just a few ideas. It's also important to work with a leading 203k lender so the closing goes smoothyl and the lender is able to work with the other parties invovled like the contractor and possibly a 203k consultant.
Learn more about this home improvement financing option with "The FHA 203k Survival Guide." The free buyer's guide helps explain the 203k, both Full and Streamline. You can then decide if it's right for your home improvement needs and desires. Get your eBook at the button below.
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