The FHA 203k Construction and Rehabilitation Loan Programs In Brandon Florida will be one of the most desired loan programs being offered for the next 3 to 5 years on bank owned and foreclosed properties. The FHA 203K is designed to allow buyers to purchase a home and borrow additional money to make improvements to the property up to a total acquisition amount of $303,000. The program only requires a down payment of 3.5% of the total acquisition cost.
Example: Sales Price $270,000.
Total Acquisition $303,000.
Down Payment (3.5%) $10,605.
This program is specifically designed for today's unique real estate market. Bank-owned, short-sale and foreclosed properties tend t be missing appliances, a/c systems and even cabinets and fixtures. The FHA 203k allows the property to close AS-IS. All improvements and repairs are made after the closing. This creates a tremendous opportunity for buyers because it is like putting in a cash offer!
The FHA 203k is available for refinancing of your primary residence. The program allows you to finance 100% of your improvements and closing cost into the loan.
Ineligible Improvements include adding a swimming pool (although up to $1,500. can be used to repair an existing pool) and Non-Permanent structures such as Sheds, Jacuzzi's and Barbeque Pits.
With the elimination of equity lines, second mortgages and high balance credit cards, the FHA 203k is the most effective way to finance home improvements in todays market.