Traditionally when a homebuyer wanted to purchase a home that needed work he would have to go through a complex set of steps including multiple loans, possibly high interest rates and ultimately a permanent loan to pay off the interim loans acquired to pay for construction as well as the original home price.
The section 203K program was designed to address this situation. The borrower can get just one loan with this new program, it can be a fixed or adjusted rate loan and can be used for the acquisition as well as the rehab of the property. To determine the amount of the loan the lender will consider the value of the property after the work has been completed.
For more information on this new program click on the Renovation Generation link below or give Chris a call at 317 271-1700
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