203K Loan Program Can Turn That Nightmare into Your Dream Home

Many home buyers prefer their new home to be move-in-ready, while another portion of the house hunting population would prefer to purchase a home that needs a little TLC. They’ve found the perfect neighborhood, and a home that seems to have tons of potential, and they decide to take on the task of fixing it up. They’ve conjured up this fairy tale of what the home could be, but they don’t quite have the funds necessary to make all the repairs. How can they take this home from a fixer-upper to their dream abode? Enter the Federal Housing Authority’s 203K loan program.

Purchasing a home in need of renovation can be a catch-22 situation for a buyer, because the bank won’t lend them money to buy a home until repairs are completed, and the repairs cannot be done until the home has been purchased. The 203K loan can be a solution to this problem. This loan is backed by the federal government and is available for qualified buyers who wish to purchase a home in less-than-stellar condition and do repairs on it, as it provides funds for both the purchase and renovation of a home packaged into one mortgage loan. The loan will also give them up to six months of mortgage payments so they can live elsewhere during the remodel, and still make the mortgage payments on the new home. Down payments can be as small as 3.5%, and interest rates are often less than 0.5% higher than conventional mortgage interest rates.

There are different types of 203K mortgage loans which cover different types of repairs. The amount of money a lender will give also varies, depending on the type of loan, and many different types of homes qualify. For more specific information on the 203K loan program, including the types of repairs covered, call Just For Buyers Realty at 910-202-4813.

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