The FHA 203K Loan

The FHA 203K loan

Most mortgage loan programs require that the property be in sound condition with no structural defects or repairs required. Not the 203K, it's made for everything from a light spruce up to completing more major repairs, improvements or new additions.

Can't find the perfect home? Find one that's close and make it just-right with the 203K!

Purchase and improve - the 203K loan covers your purchase price and the cost of improvements provided that the proposed work is supported by a projected "value upon completion" appraisal. It's far better financially speaking and far more practical for most to finance these costs into the original mortgage vs. racking up credit card bills or dipping into reserve savings later. 

What can be done? - Some home need repairs and can't be financed conventionally until those repairs are complete. Others may simple be "suffering from the 70's" and are way over-ready for the shag carpeting and Harvest Gold appliances to be ripped out. Imagine your home with shiny stainless steel, new baths and warm wooden floors instead. So whether it's a leaking roof, broken or outdated windows, a furnace that's given up the ghost or the need for more space. It all can be covered with the 203K.

Eligible Borrowers - Qualification is no different than it is for the regular FHA program. Credit requirements vary yet can be more flexible than it is with conventional financing. There are no income limits or first time buyer status requirements.

Low Down payments - The 203K is just like the regular FHA programs and can be obtained with as little as a 3.5% down payment. Gifts can be used, sellers can contribute towards costs or these can even be rolled into the loan amount right along with your pre-paid expenses such as taxes and insurance. This loan can get you into a home that others cannot finance and can do so with minimum cash out of pocket. 

All in all the 203K covers many circumstances. Whether it's facilitating the purchase of a home that otherwise would not qualify, wrapping acquisition and improvement funds into one neat package, or just minimizing cash out of pocket for buyers that have some renovations in mind. There is more work that goes into this loan and that must be considered, yet, given all the advantages, the availability of the 203K is a great thing to have. If you want to learn more or already think that this may be the right option for you, reach out at any time and we'll work together to get you started today.

To download the FHA 203K home loan flyer with the above information click this link. https://www.box.com/s/dds6y1c1qn50c0zelii8

*Colorado Realtors: If you would like to have this flyer customized with your information just let me know and I will add your contact info next to mine as a co-marketed flyer.

And don’t complain to me about being next to me or else I will start to get a complex about the way I look or something. J