Generate more home sales with FHA's 203-K rehab loan. This program allows qualified buyers to roll the costs of major improvements and upgrades into their mortgage.
203-K is the perfect solution for existing owner-occupied properties that require repairs that would otherwise delay or prevent the sale. Common repairs include new roofing, HVAC, flooring, appliances or minor remodeling.
203-K is similar to a construction loan with draws, and requires more time, added costs, higher rates and more diligence. It is not recommended for barely qualifying applicants, with no reserves. Brayden Capital is one of the few lenders that offer this classic program in the metro Atlanta Georgia market, which could be just the right solution in the right scenario.
203-K Basics: The borrower selects an approved contractor to do a "work write-up" of the proposed repairs - with detailed breakdown of costs, time frame. Purchase contract is written and disclosed as 203-K. Appraisal needs to support "after improved" value. After closing, the work is performed and the escrowed funds are released following a final inspection.
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