A heads-up to realtors and buyers: the Feds want to help you buy and fix up existing homes. FHA 203K rehab loans are for you, not for someone else.
What’s in it for them? They want foreclosure properties and long-listed homes to get into the hands of caring owners.
How do they help you?
They guarantee mortgages that cover not only the purchase price of a property – but the rehab costs as well.
Especially now, with housing prices low, mortgage lenders will only loan money on a house’s current value. If a property needs some money put into it, for rehabilitation, then you’re basically on your own for financing the improvements. In the not-so-recent past, such home buyers had to run up their credit card balances or sell their car to make a newly purchased house livable.
FHA 203K Rehab loans change all that by giving buyers the money they need in the first place – even including buyer’s living costs elsewhere for the period of renovation – up to six months.
Are there restrictions? Sure, because the Feds want to be careful with their money, but the strings attached all make good sense. You have to demonstrate that the finished property will be worth the rehab costs, you have to show the plans for improvement, and you have to show everyone that you’re making appropriate progress in your work. And you have just six months to finish it all up.
Can you use this loan guarantee program for condos and multi-unit properties? Yes, but be sure to check out the specific rules on my follow up post to this.
How do you start? Once you’ve identified a property, identify a helpful FHA lender, and begin to tackle the paperwork. The mortgage provider will be delighted to work with you – you’ll be rebuilding your community with the complete support of the FHA!
Visit my website today for more information or for more information call 832-212-6969.
Source WhatisYourRate.com
Tags: austin, dallas, fha 203k, Houston, rehab loan, san antonio, texas
