FHA 203K – The Perfect Mortgage Loan For the Fixer Upper
If you’re planning on buying a home in Orange County or elsewhere in the United States you may be familiar with home loans like: FHA, VA and conventional mortgage loans.
In 2014 many home buyers have turned to FHA loans because they require low down payments, but the reality with FHA loans is that some lenders will not approve an FHA loan if the property you’re intent on purchasing needs a lot of work.
Thankfully there is another mortgage loan option available with FHA 203K mortgage loans if you want to buy a home that needs work before it’s considered to be “habitable”.
About FHA 203K Loans
FHA 203K mortgage loans are backed by the US Federal Government and given to buyers who want to buy homes that need work before they can actually live there.
Unlike a traditional FHA or conventional loan, an FHA 203K loan will include up to $15,000, or more, which can be used for making repairs or renovations to a home before you move in and many times the loan will also include a contingency reserve of up to 20 percent if the remodel or renovation to the home ends up costing you more than you originally expected.
Which Repairs Qualify For FHA 203K Loans?
With FHA 203K loans you can use the construction funds to make repairs or renovations to a home including structural repairs like adding a new roof, deck, patio, bathroom, HVAC system or room addition.
You may be able to also qualify for an FHA streamlined 203K loan which can be used for non-structural repairs like new appliances and painting as well too.
Learn More about FHA 203K
To learn more about FHA 203K loans, or to view homes for sale across Orange County, contact Fred Sed & Associates today by calling us at (949) 272-0125.