Most people are familiar with the old saying about real estate; “there are only three things that matter about real estate 1. location 2. location and 3. location.” People that want to live in areas with high home values, good schools and convenience to shopping often pay a premium for those homes. However, the FHA 203k mortgage makes it possible to buy a home in need of repair in a nice area with only one loan.
Great for Older Homes
An FHA 203k loan will allow qualified borrowers to purchase a home and add renovation costs to the mortgage. This makes it possible for people to find older homes in need of either repair or Modernizations and fix them up via the purchase loan. Since these older homes are usually priced lower due to their condition, home buyers can get a real bargain on these properties.
Makes More Properties Available to More Buyers
There are lots of foreclosed properties available on the market. Unfortunately, these homes do not always meet the structural requirements of a government or conventional loan. These homes are often sold for cash since banks will not loan on them until the repairs are made. The FHA 203k makes it possible for deserving buyers to get a loan on these low priced homes and pay for items like electrical updates, better appliances, new roof and new flooring.
Home Renovation for Current Owners
However, this loan is not just for people looking to buy a property. If you currently own a home and wish to undertake some minor or major renovations you too can look into the 203K loan. It comes in two varieties so that people can spend as little as $10,00 on their home or a whole lot more.