Hi Friends! Are you thinking of buying a property to renovate into your dream home? If so, this may be of interest to you!
Consumers often find ample value in what I’ll call distressed homes – properties that are under a foreclosure order or up for short sale. In many cases, “distressed” speaks more to the condition of the home than their recent financial histories. They may have been empty for extended periods and/or subject to vandalism and theft. But they can be a great way to get a fantastic property for a good price, while delivering you the opportunity to create your own unique dream home…think “Fixer Upper” on HGTV!
If you are considering a home in need of renovation, you should consider a 203k mortgage. It would allow you to finance both the acquisition and rehabilitation with a single loan. NICE!
There are two types of 203k loans:
203k Streamline: This is the most popular. The maximum allowable in repairs is $35,000 and does not allow any structural repairs to be done to the home (unless they’re a result of an unforeseen circumstance).
Full 203k: Allows for structural repairs and can exceed the $35,000 in home repairs. Both types allow up to $1,500 in swimming pool repairs.
Here are some other key 203k facts you’ll want to know:
- Since it is based on the home’s potential value after repairs (not its existing value), you can be approved for a higher loan amount.
- They carry long-term-fixed rates.
- They’re insured as soon as they fund.
- They include escrow accounts for the scheduled repairs.
- Loan amounts are capped according to local FHA limits.
- Only owner-occupied properties of one to four units qualify.
- The home must be at least one year old.
You can click here for more information on 203k mortgages. Hope you find this information useful! Don’t forget to like me at Laura Kubicki Realty on Facebook too for even more great real estate information and ideas. I’m always just a couple clicks away!
Happy house hunting!