FHA 203k Mortgages – Help you avoid renovation headaches
The majority of mortgage programs only provide permanent financing. This means that there is no mortgage closing until the condition and value of the home provides adequate loan security. When a home needs rehabilitation, this means that a bank will require the improvements to be finished before any mortgage can be secured.
When a homebuyer is looking to purchase a homes in need of repair or rehabilitation, the homebuyer usually has to obtain financing first to purchase the home; then secure additional financing to do the rehabilitation; and finally a permanent mortgage when the work is completed to pay off the two mortgages that were taken out to purchase and rehab the home. Often the initial financing (the acquisition and construction loans) comes with unattractive terms such as high interest rates and short amortization periods. The entire process I just described can be a major headache and obtaining financing nowadays for this scenario would be near impossible.
There is a solution. The solution is the FHA 203k program.
The FHA 203K program is designed to make this entire process quicker, easier and cheaper for the homebuyer. Instead of the headaches involved with having to obtain three different rounds of financing, the FHA 203K program allows the homeowner to get just one mortgage loan with a low long term fixed rate to finance both the purchase and the rehabilitation of the property.
The FHA 203K is an excellent way to get the cash you need to rehabilitate your current property or a property that you are interested in purchasing. This program is only available for primary residences. Call me at 877-334-6094 to find out if the FHA 203K program is right for you.