The easiest way to make money on a foreclosure home is to purchase one that needs some repairs (over $5,000.00) and apply for a 203k loan. The FHA (Federal Housing Administration) insures 203k loans and allows you to borrow a predetermined amount of money to finance repairs to your foreclosure home.
The Pros of 203k Loans
203k loans are the most flexible way for you to customize your foreclosure home to meet your specific needs. Floor plans can be changed or updated, kitchens can be modernized and almost any other feature of your new foreclosure home can be improved using a 203k loan.
By taking advantage of a 203k loan, you can skip up to eight months of mortgage payments on your foreclosure home.
A 203k loan allows you to bill yourself for hours worked on your own home and MAKE MONEY! The Cons of 203k Loans
203k loans are slightly more expensive than the usual FHA loan.
203k loans are slightly more complicated than the usual FHA loan.
The 203k loan program is an FHA insured loan that has similarities to construction loans with some added bonuses. A booklet explaining 203k loans in more detail can be downloaded from the link below or requested from your local real estate agent. This booklet can answer most questions with regard to a 203k loan and how it relates to your foreclosure home.
For more information about Real Estate or Foreclosures please visit www.USHud.com
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