An FHA 203k loan may be the perfect tool for you. That’s because you’ve been searching for a long time and you’ve found a home. And because you think it’d make an ideal home for you, you want to buy it .
How to Finance the Purchase
While the home can be ideal, it’s in need of both repairs and renovations. You may have enough cash for the down payment, but you don’t have the cash necessary to do the repairs and renovations done. Is there a solution?
Frankly, I wouldn’t waste time writing this if I didn’t have a suggestion. A possible answer is the FHA 203k loan, because it’s designed for situations just as this. You can refinance to pay off the existing mortgage, or finance a new purchase. Either way, the necessary funds to repair and renovate are also available. The loan would be based upon the value of the property after it’s been repaired or renovated, not on the present value which is in need of work.
What can the funds be spent on?
You can use funds from the FHA 203k loan for kitchen remodeling or bathroom renovations. You can also add a deck, an addition, a garage, or even a new HVAC system.
Would you like to use FHA 203k loan funds to add a pool to your property? Sorry but that’s not an allowable item.
FHA contractors must be used, and there will be inspections. The funds will be released to pay the contractors as certain milestones are reached.
Bottom Line
The FHA 203k could be the key to either buying your dream home, or renovating your existing home. For more details, we recommend that you speak with a mortgage professional who’s experienced in FHA 203k loans. If you need a recommendation, please call us.
Search for your new home here. Or you can search for homes in other Monmouth County towns.
Related Blog Posts