HUD’s 203K REHAB LOANS – an Fha product
The Fha 203K offers consumers the ability to purchase and renovate a house with just one settlement. This simplifies the traditional construction process, which many times involves two loan closings, high fees and balloon loan payments hat can be called at a given time.
The current economic client of foreclosures and strategic defaults has left a glut of homes for sale that need work. These homes often referred to as a fixer upper, are perfect candidates for HUD’s 203K Rehab Loans. Because they are guaranteed by HUD they are underwritten with the consumers best interest in mind. And because they fall under FHA guidelines, the approval process is clearly defined.
First time home buyers can take advantage of the 203K. The combination of depressed home values and a glut of properties that need rehabilitation should put first time home buyers in the drivers seat when discovering their options. But take my advice and only work with lenders and real estate agents that have experience with his product. The 203K Rehab Loan is not a difficult loan to close, but without experience with these loans it could turn out to be a very frustrating process. Experience is key with this product.
The 203K can be used for purchase and refinance transactions. Interest rates are very competitive with current market rates. Appraisals are based on future value. Your home ownership dreams can come to life. As with any new venture, understanding the product is key. Seek high quality mortgage advice when dealing with this product.
MARYLAND 203K LOANS - MARYLAND REHAB LOANS