Stay Real ~ Mortgage: FHA 203(k)

Hey everyone, I wanted to talk to you all about a certain type of mortgage that many may not be aware of, but can be very beneficial and help to get you to the desired status of home ownership. The FHA 203(k) program provides a single close loan that enables a qualified buyer to purchase a home that may need repairs, to refinance an existing home for the purpose of remodeling, or to move an existing home to a mortgaged property. The streamlined FHA 203(k) program allows the buyer to finance a maximum of $35,000 to make improvements. Both programs generate the necessary funds for renovation by financing the as-completed value of the home, rather than the present value.

FEATURES:

• primary residences that are 1 to 4 unit properties
• purchase and rate/term financing
• fixed rate mortgages with 30 year term
• up to six months for rehabilitation
• one underwriting review and one closing for rehabilitation construction and permanent financing

This type of loan is meant for borrowers who:

• want an alternative to a closed-end second mortgage or HELOC
• can benefit from flexible qualifying requirements
• are looking for a cost effective way to repair or improve their current home
• plan to purchase a home that needs repairs
• want to rehabilitate a neglected or damaged foreclosure property

This is a very smart way to go if your needs fit the ones I described and I would recommend consulting a mortgage counselor for more details. The economy is tough but dont get discouraged because, just like the FHA 203(k) programs, there are many other options to assist you in closing on the home you want. I strongly recommend consulting a Mortgage counselor in order to see all of your options because it may be easier than you think to acquire the home you want and get it when you want it.