FHA 203K Loans
By Josie Wells, Agape Life Contributor
updated Fri January 16, 2015
FHA 203k loan is ideal for all buyers’ especially first time home buyers. I say this simply because of the benefits of getting a home that may be a foreclosure, short sale or a fixer upper that isn’t in good living conditions. An FHA 203k loan is a loan backed by the federal government, which allows buyers who are looking to get more home for their money. Here’s how it works: Let’s say you want to buy a home that needs a brand-new bathroom and kitchen. When you first met with your mortgage consultant they gave you a loan amount in which you were qualify for. For example let’s say that your pre-approval is a $100,000.00 and the property that you like needs $15,000.00 in repairs. You would only be able to offer the Seller $85,000.00 for this
home because both offer & repair amount must equal your loan amount. Another reason why this may be a great option for buyers is it may reduce costs and paperwork because you won’t have to borrowed extra money to do the repair separately. Rates are competitive, and by saying that means you would qualify for a home that would normally not be approve by a bank. Finally, when looking in today’s market you will see many foreclosure, fixer upper etc. Have no worries you may find the home of your dreams at reasonable cost with little repairs needed. Make your dream home a reality today; check out a FHA 203k loan this may be the answer you been looking for!