Thursday, January 08, 2009
FHA 203k and 203ks : Rehabing a Home
FHA offers two programs for borrowers that would like to buy a home, or refinance a home, and simultaneously acquire the money needed to complete a home improvement project, major or minor project. The two programs are known as the 203k and the 203ks.
Need a new roof, kitchen, furnace, air conditioning, septic, well, flooring, paint, appliances, mold remediation, fix up a shabby foreclosure, upgrade a bank owned purchase, maybe you want to add a bedroom room or two? Yes you can with the two best purchase/rehab programs on the market: the FHA 203k and ks programs.
The 203k will allow borrowers to complete major renovations up to the maximum FHA lending limits for the particular county. Example: I purchase a home that needs to be demolished and rebuilt. I purchase the home for $50,000 in McHenry Illinois and the project needs $300,000 to complete. I can receive via the FHA program the full $350,000 less downpayment and closing costs at todays rate of 6.00% to complete the entire project.
The 203ks allows borrowers to make less complicated projects a reality. The FHA 203ks offers the home owner or purchaser up to $35,000 to fix up the home the way they like it and not have to come up with additional money after transaction close to complete the task. Example: I purchase a home for $250,000 in Chicago Illinois and need $35,000 for hardwood floors and a roof. I can receive $285,000 less downpayment and closing costs to complete my project.
The genesis of these programs was the 80's when there were so many foreclosures on the market and HUD needed a way to "bring up" properties in the hardest hit area's. At that time these loans were offered to investors, but no longer. They worked so well HUD kept offering them. These programs allow home owners to beautify their homes while renewing neighborhoods. Its a win win for everyone.
Both programs are simply fantastic and you can view my 203ks PowerPoint presentation to learn more at: www.realestateloans.com/203ks.ppt
In my opinion these two programs are in the top five all time greatest loans. Call me an I can walk you through the steps to qualifying, writing up and obtaining this loan.
