A Mortgage Minute TV viewer asked a great question in the comments to one of our FHA 203k videos. I went straight to the expert, AmeriFirst's Renovation Program Manager Joe Daly to get the answer. As always, he was quick to get me an easy to understand, informative answer. So I decided to include the information in an article so everyone could have the information available.
Viewer "TaTeRoxx" left the comment on "I Want This House BUT." Here's what he said:
I have watched several of your videos. It has been a big help in understanding the loan. Sometimes the loan officers talk to fast, but you made it easy to understand.
Does a 203k loan effect my taxes at the end of the year??
Joe Daly responded for us:
The FHA 203k loan can actually help you come tax time, as the interest you pay on you mortgage is tax deductible. Not only on the money you borrowed to buy your home, but all of the monies you borrowed for your repairs and renovations that are now rolled into one convenient mortgage. There would be no tax disadvantages with the 203k loan over any other FHA loan. Borrowers should also inquire about tax qualifying rebates on energy efficient/conservation products too while considering an FHA loan. As always, consult a tax professional for advice or to confirm our response!
So there you have it! Tax time can actually be made a little less stressful with the FHA 203k loan. In fact, a lot of stress can be eased by the 203k. With this mortgage option you can make all kinds of home improvements and repairs to turn the house you like into the home you love. New kitchen? Done. Need an extra bathroom? Sure thing. Want to repaint the house and get new flooring? You can do that. And all of the work gets rolled into the mortgage payment at about $6 for every $1,000 in work. In other words, a $20,000 project will add about $120 to the monthly mortgage payment.
You can see the "I Want This House BUT" video below, or click the title to see for yourself.
Download free FHA 203k Guide at the button below to learn more about the FHA 203k . Have any other questions for Joe about the FHA 203k? Leave us a comment below!
(tax photo: Flickr user Images of Money)