Are you handy around the house? Do you like remodeling your home? Is your dream home a fixer-upper? You may be the perfect candidate for a 203K or Rehab Mortgage Program. This unique government mortgage program is ideal for someone interested in putting more sweat equity than down payment on a their new home.
Government Wants You to Rehab Homes
The great thing about wanting to buy a fixer-upper home is that the government wants you to buy these kind of homes. In fact, the government is so motivated to have these dinged up homes sold to motivated and handy folks that they will help you finance it. There are literally hundreds of homes, sitting vacant due to foreclosure. Homes that have been neglected by owners whom couldn’t afford to maintain them for months (maybe even years). The government knows that this only makes the current housing crisis worse. They need people to buy these homes and fix them up to get this economy started again.
203K Loan Require Little or No Down Payment
The incentive is that FHA (Federal Housing Administration) will give you a mortgage with nearly zero down payment so that you can put all that money into repairing and improving the home. The really great part is not only are you saving on a down payment, but you are literally and immediately increasing the value of your home. If you have the ability or the capital to fix up your new home this is the best way to buy a home in this market. You get to put your cash and effort directly into increasing the value of your investment.
How Can I Use a FHA 203K (Rehab) Loan?
You’re next question is probably, “How can I use a Rehab Loan?” The good news is that there are lots of ways to use this kind of mortgage to improve a new home or even
- refinance and fix-up your current home.
- To purchase a dwelling and the land on which the dwelling is located and rehabilitate it
- To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it
- To refinance existing indebtedness and rehabilitate a dwelling
To get more details on how this can be your best option to buy or refinance your home call one of our mortgage professionals today at 248-724-2200.
About David Hall