About 203k

Typically, when a homebuyer wants to purchase a house
in need of repair or modernization, the homebuyer usually
has to obtain financing first to purchase the dwelling;
additional financing to do the rehabilitation construction;
and a permanent mortgage when the work is completed to
pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods.

HUD's 203(k) program was designed to address this situation. The borrower can now get just one mortgage loan, at a long-term fixed rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan and the borrower has what will soon be their dream home.

To get the full scoop, click here to read about it directly from HUD’s website.

Here are just a few benefits you get with FHA 203k:

·	Low Down Payment - Only 3½% down payment required and this money can be a gift
·	Easier to Qualify - allows those with less than perfect credit to purchase a home at competitive rates
·	One Loan - takes care of both purchase and improvement of your home, which in turn saves you time and money
·	Assumable - FHA loans are assumable and there are no pre-payment penalties making your home easier to sell down the road by having the ability to transfer the benefits of the FHA Government insured mortgage loan
·	Go Green! - an FHA Energy Efficient Mortgage (EEM) can allow you to qualify for a larger mortgage to add additional improvements that will lower your utility expenses and improve the environment
·	Peace of Mind - we eliminate the "fear" out of rehab by putting all the pieces together for you. We work with only professionals that are familiar with the 203k process
·	More Protection to Keep Your Home - FHA always makes efforts for keeping the buyer in the home and avoid foreclosure
·	What You Want - choose exactly according to your tastes and needs
·	Great Deal - take advantage of the great prices that are available on foreclosures or other homes that are in need of repair or remodeling than paying a premium for a home in "perfect" condition
·	What You Want - Where You Want - How You Want - that's the 203k way!

Home Renovation - Made Simple