Buy and Renovate Today!
The 411 on the 203k
Have you ever wondered if you could get a loan for a fixer-upper without having an immense amount of capital? There’s another type of FHA loan out there for you! A 203k loan is exactly that and allows buyers to roll the costs of the renovation into your mortgage!
So, buyers can either refinance or freshly purchase a home that requires larger renovations and get a loan that covers both!
Before you get too excited though — it’s important to note that more luxurious renovations like a pool, for example, are not covered under a 203k loan.
Sound Too Good To Be True?
Here’s how it works
In most cases, the loan functions in one of two ways:
The loan provides breathing room or funds up to six months or so of mortgage payments so you can live elsewhere while you’re remodeling, but still pay the mortgage payments on the new home. Large renovations and where to live is the biggest issue homeowners face and this provision solves that!
Up to 20% contingency reserve just in case the estimated cost for revision is low (another common issue)