The FHA 203K Rehab Option
The FHA 203K is a loan that lets the buyer finance the cost of the purchase of a property along with desired or needed improvements.
Additionally, where necessary, the loan can include the cost of renting another place while the property is being renovated.
With this type of financing, the buyer has more options in finding the home that truly meets their desires since it opens up the market of less than perfect homes to their list of possibilities.
By using this method of purchasing a home, the buyer can assure that rooms such as the kitchen or the bathrooms are done to their liking.
The home pictured below is an example of a home which could use the FHA 203K loan.
The particular home, located in Parkville, Maryland is available.
This home needs a roof. It would be covered by the FHA 203K loan.
Additionally, the exterior could be painted or vinyl sided to make it more attractive. This would be covered by the loan.
The living room needs to have the floors and walls refinished. The buyer could refinish the existing floors, replace them with new hardwoods, or have them carpeted. Any of these options would be covered by the loan.
The fireplace could be cleaned including the flue and it would be covered by the loan.
The floors in the spacious kitchen, the counter tops, and cabinets could all be replaced. Once again, it would be covered by the loan.
Of course, the finished product would have to appraise, but since the house needs work, it would sell for a lower price to start.