Buying a Home in Need of Updating or Repairs? Check Into an FHA 203K Loan!

By
Real Estate Broker Owner with Bielenberg & Associates

You've been out looking for a new home and have fallen head over heels in love with one. But, there is a problem, the one you fell in love with needs a little more work than you have budgeted.  You've got the money saved up for your downpayment and closing costs, but not the additional amount to make all the repairs and improvements it will need to make it a comfortable home.

There may be a solution! The Department of Housing and Urban Developement's FHA Streamlined (203K) loan is designed to allow qualifying borrowers an opportunity to repair or upgrade their single-family homes before moving in. The 203K loan is a single mortgage that provides home buyers with easy access to a set amount of cash that can be used for property repairs and improvements.  The special feature of this loan, is that the additional funds are combined into your mortgage, so you only have one loan.  In essence, you are financing the repairs and improvements up front into one mortgage.

As with any loan, there are rules and guidelines that need to be followed. Not every buyer or every repair will qualify and you will want to speak with a Lender who is knowledgeable about the 203K loan program.

Posted by

Jani Bielenberg

Bielenberg & Associates, Metro Brokers

       303-770-1977

5280 Magazine has presented us with the FIVE STAR Professional Real Estate Agent Award for an amazing 4th year in a row. This recognition is based solely upon customer satisfaction ratings. Our thanks to all who nominated us!

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Topic:
Lending / Financial
Groups:
Colorado Real Estate
Tags:
fha 203k loan
203k
203k loan
borrowers
homebuyers
home repairs

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Rainer
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Gordon Lane - selling homes in Sacramento and Yolo Counties
Lyon Real Estate

I went to a presentation on these last month and got all excited. Haven't been able to incorporate one into a deal yet but sure have been talking them up. What a deal for someone buying an older home that needs work like window upgrades and insulation - the energy savings will pay for the additional monthly costs.

January 06, 2010 04:54 PM
Rainmaker
77,123
Robert & Jani Bielenberg
Centennial, Colorado, CRS, GRI,e-PRO
Bielenberg & Associates

Hi Gordon, It really is an excellent opportunity for a buyer that qualifies for the program. So many of the homes need updating or repaired.   

January 06, 2010 05:27 PM
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Rainmaker
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Robert & Jani Bielenberg

Centennial, Colorado, CRS, GRI,e-PRO
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