A 203K FHA Loan Can Help You to Accomplish Owning Your Dream Home
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When coming upon a house that you love, but is in serious need of repairs, don't dismiss it until you've read this important information!
A 203K loan is insurance that enables homebuyers to finance the purchase of a house AND the cost of its rehabilitation through a single mortgage. This helps those who have exhausted their savings on the 3.5% down payment necessary to purchase a home be able to make improvements ranging from new appliance installation to gutting and refinishing the kitchen entirely.
Some things to keep in mind include that the home must be at least a year old, the cost of rehabilitation must be at least $5,000 and the types of improvements that can be made using 203K financing include:
- structural alterations and reconstruction
- modernization and improvements to the home's function
- elimination of health and safety hazards
- changes that improve appearance and eliminate obsolescence
- reconditioning or replacing plumbing; installing a well and/or septic system
- adding or replacing roofing, gutters, and downspouts
- adding or replacing floors and/or floor treatments
- major landscape work and site improvements
- enhancing accessibility for a disabled person
- making energy conservation improvements