203k loan - what is it?
My fellow Realtors, Please help me thank Mike Young of 203K Online for providing this very informative post about the 203K Loan Program. This is great information to share with your clients
The FHA 203k loan guarantee program is a standard FHA loan (203b) with an additional “construction” component. That is to say you can purchase or refinance a property and get the money to renovate the property all in one low interest loan.
The lender actually loans their own money with a guaranteed from FHA that the loan will be paid in full under the terms of the loan or FHA will pay off the loan and take the property back.
The unique thing about this loan program is that it includes low interest, fixed interest. and money for the renovation all in one 30-year, fixed rate mortgage.
What amount of repairs are available? Up to the maximum mortgage limits for your county. I don’t know how many times I’ve heard someone telling me that they lost a deal because the 203k renovation exceeded $35,000. They were merely talking to a lender who only did the Streamlined k loans. You, as a realtor need to know the programs and realize that the Full 203k can save your deal many times.
Mike Young, 203k Team Leader
With offices coast to coast and HQ now at 1500 Oliver Road, Suite K-228 Fairfield, CA 94534 - 1.707.812.7668
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