FHA 203K Loan
The FHA 203K mortgage is ideal for the rehabilitation of HUD, REO, and Short Sale Properties.
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The FHA 203k loan program is the primary government program for the rehabilitation and repair of single family properties. Basically, it's nothing more than a glorified home improvement loan. The 203K mortgage is a terrific tool for community and neighborhood revitalization.
When using the FHA 203k rehab loan, home buyers can target homes intended to be used as a primary residence that need work. Sources for these properties include bargain real estate via REO (property held by banks), qualified homes in the HUD inventory, and homes sold as a short sale property via the MLS. Want to learn more? Use our quick quote today!
The 203K mortgage is not just for the purchase of a home. Qualified homeowners can successfully use the FHA 203K Program to make many improvements to a primary residence. Again, it is basically a construction loan for the improvement of existing properties.
The qualifying standards are no different than traditional FHA Purchase loan guidelines -- which can make getting an FHA 203K rehab loan a very attractive financing vehicle. Get more information on the 203K program using our quick quote application!
Where Can You Use a 203K Loan
You can utilize the FHA 203K loan program to accomplish rehabilitation and/or improvement of an existing HUD approved property:
· To purchase a qualifying property and the land on which it is located and rehabilitate it;
· To purchase a qualifying property on another site, move it onto a new foundation on the mortgaged property, and rehabilitate it;
· To buy a bank REO-qualifying property that requires significant improvements (rehab) in order to bring the home to FHA loan standards;
· The 203K program can be used during the purchase of a qualifying home being sold as a "short sale" property ( i.e. pre-foreclosure) that requires repairs to bring the home into compliance;
· To refinance an existing home mortgage and make one or multiple home improvements to the home owner's qualifying property.