The But Loan® Mortgage Program
It's a catchy name. But it's not just a funny name. The But Loan® mortgage program is a solution to a problem for real estate agents and home buyers alike.
Picture it: a potential home buyer is out looking for a place and finds a great deal in the perfect neighborhood. There's a problem though. "I'd buy this house but I really need 2 bathrooms." If everything else lines up except for this, then the FHA 203k loan program is a great solution. It also works for improvements like adding a deck.
Check out this quick video with AmeriFirst 203k Program Director Joe Daly about "everything after the but." He gets animated about the But Loan® mortgage program.
Facts About the FHA 203k
The Department of Housing and Urban Development added the 203k section to its FHA program in the late 1970's. The goal: to help buyers roll repairs, renovations and improvements into the life of the mortgage. This should help turn run-down neighborhoods into desirable places by improving the homes in the area. Unfortunately, education about the FHA 203k was lacking, and closing these loans was difficult. Plus, the standard 203k covered so much work, it was overwhelming.
A few years ago, the Streamline 203k was introduced, and now buyers have a second option when it comes to repairs: they can borrow up to $35,000 for non-structural repairs. Combining a better understanding of the 203(k) section of the FHA loan program with this new option has opened the door to many home buyers looking for good deals.
If you'd like to learn more about the FHA 203k, download our free eBook below. The 203k Survival Guide breaks down the mortgage process so it's easy to understand. We offer you information like eligible properties and what work is covered (and what's not covered). The best part: it's completely free. Check it out. And when you're ready to talk to a 203k specialist, we have those, too.
What has kept you from buying a house you loved? Leave a comment and see if the 203k would have covered it!