203k Rehab Loan, The Fha Answer To Outdated Or Run Down Properties

Most homebuyers won't waste their time on fixer uppers because they are too much work and cost too much. It is also really tough to get financing on a property that is in bad need of repairs. A 203K Rehab Loan can be the answer to your prayers. It's a specialized FHA loan that allows the borrower to finance up to $35,000 in repairs and improvements on the home. This loan can make a run down or outdated listing much more attractive to potential buyers. It can also put an offer to purchase at the top of the pile because the financed rehab repairs will satisfy any loan conditions and the desires of the buyers.

Properties can range in their need for repairs and improvements. Some properties need a new roof and some need a remodeled or updated bathroom or kitchen. Sometimes a home just needs a room addition in order to keep up with the potential homebuyer's growing family. Whatever the case may be $35,000 can really improve a fixer upper, help make the property qualify for financing, or simply improve the property to be desirable to the buyer. Because the 203K Rehab loan is an FHA Loan, the borrower can put the minimum down payment of only 3.5% of the purchase price. It can even be used in conjunction with the Energy Efficient Mortgage which allows the borrowers to finance up to an additional $8,000 in energy efficient improvements. If the property and improvements qualify the borrowers could finance up to an additional $43,000 in home improvements at the time of purchase.

Imagine buying a home and being allowed to finance improvements into the home loan. Repairs of this magnitude would take most people years, sometimes decades, to do on their own. With this specialized FHA loan buyers can have it all right now instead of waiting and saving for years or taking outrageously high interest rate loans for badly needed improvements. This loan can also help attract buyers that might have normally passed on the property altogether. The 203K rehab loan can be the answer to a homebuyer's and listing agent's prayers by financing the required repairs on a fixer or outdated home.

By: CReese

Article Directory: http://www.articledashboard.com

mortgageratessacramento.com/blog.html