Why The FHA 203(k)

FHA 203(k) is for those wanting to purchase a home as their primary residence which is in need of repairs, and needing to purchase with a minimal down payment.  The down payment is 3.50%.  The repairs may even take the loan to value slightly above 100 percent and we are still able to move forward with the transaction.    Especially good avenue for purchasing a home in an urban area or surburban area with similar comparable sales and upkeep.   Often today when you see an historic area brought back to life with several homes on a street renovated, at least one of those homes, more than likely, had renovations done utilizing the FHA 203(k).  You have a streamline FHA 203(k) with repairs and inspections fees up to $35,000.  The streamline is for renovations where walls are not being moved.  Your next option is our standard FHA 203(k) which allows for larger projects going up to your county loan limit, or debt to income, or loan to value, whichever of the three is hit first.  Your standard FHA 203(k) will allow for moving of walls, changing the flow of a home such as what you view on one of my favorite TV shows “Fixer/Upper”.   Today their is definitely a reason for either the streamlined or the standard FHA 203(k).   Look forward to crunching numbers with you when you are ready to make that next big change!

 

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