PURCHASE AND REHAB YOUR HOME IN SARASOTA FLORIDA WITH AN FHA 203(K) LOAN - Most home buyers are turned off at the sight or even thought of buying a fixer-upper; a foreclosure or an older home today. However, educated and informed home buyers are utilizing the FHA 203(k) loan to buy their new home and fix it up with no additional out-of-pocket expense.
The FHA 203(k) loan is a tool that savvy home buyers, successful contractors, Realtors and mortgage originators have been using since 1978. An FHA 203(k) loan is very similar to the traditional FHA loan. The only real difference is that with the FHA 203(k) loan, the home buyer is adding money to their mortgage balance to finance-in any repair/improvement cost.
Whereas the traditional FHA loan requires that certain repairs be done before the home is purchased, theFHA 203(k) loan allows the home buyer to purchase their home and complete the repairs after the transaction closes.
The other traditional FHA qualifications (appraisal guidelines,seasoning rules,credit qualifications, etc...) still apply. But with the FHA 203(K) loan, a home buyer can fix up his home and not have to worry about the additional out-of-pocket expenses for the repairs/improvements. What a brilliant way to purchase a fixer-upper!
1. Better opportunities for a great financial deal on a home purchase
2. Allows buyers who are approved for an FHA loan to buy properties that would not otherwise qualify
3. Allows buyer to put personal touches into the interior/exterior making it feel like more of a home
4. Sellers do not have to pay for repairs prior to listing the property if they do not care to
5. There is less competition to buy fixer-uppers which forces sellers to accept lower offers
6. FHA loans are assumable; so when buyers go to sell house it will be easy to market.