What Is a 203k Mortgage?
After buying a house, cash-strapped borrowers might have a hard time making necessary home improvements. Traditional financing requires a purchase loan and a separate construction loan. The Federal Housing Administration offers the 203(k) rehabilitation loan to cover both a home purchase and property improvements. There are two versions of the 203(k) loan -- streamlined and regular.
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Streamlined 203(k) Loans Cover Minor Repairs
Homes in need of minor, cosmetic repairs may qualify for up to a $35,000 loan amount through the 203(k) streamlined program. FHA lenders require less oversight of the repair work in a streamlined renovation. You can use it to make a purchased property move-in ready or prepare your home for sale. Common repairs include interior painting, re-flooring and kitchen and bathroom remodels.
Regular 203(k) Is Used for Remodeling
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The FHA 203(k) Streamlined Mortgage is a viable option for thousands of homebuyers.
Most mortgage lenders only provide loans once the value of a property is securely established. This allows them to know the exact.
Comments You May Also Like. How Does a FHA 203K Loan Work? Although purchasing real estate to rehabilitate and sell is often.
In some housing markets, affordable homes come at a high price. In exchange for a low-priced home, a buyer must invest extra.
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