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Benefits of the 203K Program in Philadelphia & Reading, PA
BENEFITS OF THE 203K PROGRAM
As a FHA 203K Consultant around Philadelphia and Reading, PA, I am asked a lot - What IS the203K program and what are the benefits? The 203K program, sponsored through HUD, is a purchase-renovation program in which an all-inclusive loan serves to both acquire a real estate property and restore or upgrade the property to current marketable conditions. In other words, you can buy the fixer upper and cover the renovation costs all in one low- interest mortgage AND this isn't just for low income borrowers! It's open to everyone- from existing property owners looking to modernize their high-priced homes to those who can only afford a fixer-upper.
So what are all the benefits? Perhaps the greatest advantage of the 203k loan is the break you get in interest rates. The loans are offered at about 1 percentage point above standard FHA loans. Yes, that rate is more than a conventional mortgage but consider the alternatives when it comes to the renovation - using a second mortgage, interest-bearing credit cards, or construction loans all have rates that are considerably higher. If you plan to do $10,000 or more in renovations to your home, the ... more
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