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If you've heard the term 203(k), FHA 203k, 203k loan or 203k renovation mortgage, then you're one step ahead of most Americans. This special product offering from HUD for fixing up housing stock has been around since the late 1970s, yet many real estate agents know nothing about it, and the public is in the dark. Even if you've heard of the 203k, you may not know much - if anything - about it. That's all okay. We're here to let you know what it means and how it can help home buyers (and even sellers!).
Where's home for you? Is it living in a quiet suburb with friendly neighbors, just a car ride away from your favorite Italian restaurant or movie theater? Or have you always longed to live in a more secluded and natural setting, miles away from your nearest neighbor?
You ask. We answer. It's a simple thing, really. We love looking at questions from home buyers and answering them, since we know if one person asks, there will likely be many others with the same question. One popular subject is the renovation mortgage called the FHA 203k. You'll find a lot of working parts in this mortgage loan option. Which means we find more questions. In fact, a recent email came in to our marketing team that asked 4 questions we figured were pretty popular, since we've heard them before. For the answers, we went to the experts on our renovation team, and Renovation Lending Program Director Joe Daly got back to us.
Paycheck stubs. W-2's. Bank statements. Piles of paperwork. Investment statements. Your first born child.
Here's a mortgage question we received recently: "We have been pre-qualified for a regular FHA loan but we'd like to get qualified for a 203K loan so that we can look at "fixers" that might be more in our budget. Can we do that?"
When you're buying a house and you're ready to move, patience can be hard to come by. A week can seem like a month. It's even worse when you're waiting on someone else, and you're ready to get things done. A common question during the mortgage process is "How long?" This could be "How long does it take to get pre-approved?" Or a home buyer who wants to use an FHA 203k loan to do some upgrades or remodeling on the house they're buying might ask, "How long does it take to go from making an offer to closing?"