Fixer Upper Loan Option

You could take advantage of a fixer-upper home and make repairs with an FHA 203(k) rehabilitation mortgage loan. The 203(k) is one mortgage loan that combines the cost of buying the home with the cost of making repairs. The 203(k) could be ideal for qualified buyers interested in purchasing a home that needs repairs or updating. Advantages to using a 203(k) loan are qualifying with as little as 3.5% down, the cost needed for repairs is built into the loan amount, the loan amount is based on the subject to home improvement value. This is a wonderful option if the home needs only limited repairs. You do have to qualify for the 203(k) just as you would any home loan. There are two options: Streamline or Full. The FHA Streamline 203(k) has all of the advantages of the Full 203(k), except it is limited to $35,000 of loan proceeds being applied toward repair or rehabilitation. Of course, I'm available to explain the details so you can select a loan that suits your needs.