I just closed another transaction where my clients that were first time home buyers used the 203k Rehab loan. I am not a mortgage broker so I am not going to go into great detail. However, this is a wonderful program to help many FHA homebuyers purchase a home that needs some updating. This is a quick blurb from HUD’s website:
The Section 203(k) program is the Department’s primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it.
So, if you are tired of competing with investors that are purchasing home and inflating prices or you just can’t find the finished home that fits your needs. Maybe a 203k loan is the right thing for you. I have a current lisitng on 230 W. 2nd. It is priced almost $100,000 dollars below a house on the same street that sold 1 month ago with the same number of bed and bath and square footage. In my estimate it needs only $50,000 to update the home. This is a perfect example of a home that could use 203k funds to update and fund the house.
