FHA 203K Loan

FHA 203K Loan

The main benefit of these loans is that they give you the ability to buy a home in need of repairs that you might not otherwise have been able to afford to buy. Plus, the down payment requirements are minimal, and often you get decent interest rates.

An FHA 203K loan is a loan backed by the federal government and given to buyers who want to buy a damaged or older home and do repairs on it. Here’s how it works: Let’s say you want to buy a home that needs a brand-new bathroom and kitchen. An FHA 203K lender would then give you the money to buy (or refinance) the house plus the money to do the necessary renovations to the kitchen and bathroom.

Often the loan will also include: 1) an up to 20% “contingency reserve” so that you will have the funds to complete the remodel in the event it ends up costing more than the estimates suggested and/or 2) a provision that gives you up to about six months of mortgage payments so you can live elsewhere while you’re remodeling, but still pay the mortgage payments on the new home.

Follow Bruce Jenkins - Excel Financial Group On Social Media

Licensing

NMLS: 302209

Contact Us

Bruce Jenkins - Excel Financial Group
123 N College Ave
Fort Collins, CO 80524

Direct Phone:
(970) 689-2665

Appointment Hours: MON-FRI 8AM - 5PM

Phone Hours: MON-SAT 8AM-8PM