What is a 203K Loan and How Can it Help You Find Your Next  Home?

There have been a lot of changes in home financing.  The focus, unfortunately, has been mostly on the tightening of criteria needed to qualify -higher down payments, higher credit scores.    But, did you know that there is a mortgage designed for buyers to help them purchase a home that may need some repairs or upgrades?

If you haven't heard about the benefits of a FHA 203K Loan then you need to.   A 203-K loan is an FHA Rehabilitation Mortgage.

•·         It allows the buyer to incorporate the cost of fixing up the home into their mortgage. 

•·         Only 3% down payment required  (based on purchase price + rehab cost)

•·         Owner- Occupied Homes only

•·         Minimum of $5000 in repairs is required

•·         Must use a HUD Consultant for the initial work estimate

•·         Maximum financing capped at FHA county limits

What does this mean for Buyers?

 Repairs include safety and code issues (electrical, roof updates) but they can also mean upgrading that tired kitchen or bath, upgrading the cooling or heating system, paint, new siding. This means you can look at less expensive homes you would have otherwise passed over. Remember all those homes you've looked at and would have bought if they didn't have a "tired" kitchen or "60's" Bath? Now you can purchase them with a 203K loan that will enable you to have the money to turn any home into your dream home.

What does this mean for Sellers?

 If your home needs some upgrades and your home meets 203K guidelines , I can market your home with a Renovation and Payment Plan   Stop telling buyers your home needs TLC - SHOW THEM what renovations can be included if they buy your home.  Imagine how they will react to statements like "If you want to change the carpet or refinish the hardwood floors you can include it in your mortgage or the kitchen cabinets, new bath, put on a deck" ]

 To find out more - contact Donna@CTHomeConsultant.com and "Let me be the KEY to your next home"