Searching for the perfect home has become quite the chore in the last couple of years. The headlines say it all - housing stock is down. This means you as a buyer have fewer homes to choose from on the market. What's a buyer to do?
This can be especially frustrating for a first time home buyer, as most first timers don't have the means to get into a bidding war.
There's an option out there for financing your dream home - even if it looks like a nightmare. The FHA 203k renovation mortgage puts the low down payment option of the FHA loan to work with the power of after-improved value once the remodeling is finished.
The FHA 203k loan is a very popular and helpful mortgage. You can make home improvements to the house you want, or the home you already own, rolling the cost into one mortgage.
Use the funds for simple upgrades to your home like a kitchen or bath improvement, or to completely reconstruct a home that is presently unlivable. You can even use a 203k rehabilitation loan to tear down an existing structure and build a new one using some portion of the existing foundation. You can borrow up to 96.5% of the appraised value - based on the value when the improvements or repairs are completed.
Get a little more in-depth answer - but still short - at the video below.
What is the FHA 203k (in under 3 minutes)
In short, with the FHA 203k you can:
- Replace a roof
- Re-side the home
- Re-paint inside and outside of the house
- Replace appliances
- Put in new flooring
- Build or replace a deck/patio/porch
- Replace windows
- Remodel the kitchen
- Repair or replace the septic system
- Learn what else you can do in our FHA 203k articles
How does it work for the borrower and all involved? Check out the video below:
If you're ready to explore this option for buying your first home, your next home or your dream home, check out the button below.