Buying a fixer-upper today and turning it into your dream home later can seem like the perfect plan — but the actual cost to renovate and remodel is sometimes a much harsher reality.
Here’s the deal: you’re taking on a lot with this project. At least save yourself some headaches by getting one mortgage to finance the purchase and all that repair work. We’ll lock you into a competitive interest rate over a 30-year term. This is where an FHA 203k loan program is a perfect fit.
Key Features of FHA 203(k) Loans
- Use one loan to finance the purchase and home renovation
- You have six months to remodel/repair your house
- Standard FHA guidelines are used to determine eligibility
|Down Payment||3.5% of the final loan amount|
|Terms||30 years, fixed|
|Credit Score||640 minimum|
|Maximum Loan Limit||Yes, varies by county|
Key Benefits Of FHA 203(k) Loans
The FHA 203k loan program is a secure, government-backed mortgage program suitable for most borrowers. It offers the benefits of easy credit qualifying, low closing costs, and competitive rates.
There are two types of FHA 203k loans based on factors like the current property value, repair costs, and the estimated properly value after the renovations.
With a regular 203k, the maximum amount of money you can borrow is less than these two amounts:
- Current value of the property, plus the repair costs
- 110% of the estimated value of the property once improvements are done
With a streamlined 203k, the maximum amount of money you can borrow is the purchase price of the home, plus an additional amount of up to $35,000.
Here’s why it works for many homebuyers and homeowners: easy access to cash to finance property repairs and improvements. Other key benefits are the low down payments and competitive interest rates.
With an FHA 203k loan, you can dream of your ideal home and start turning it into a reality. If you’re ready to move forward, apply with one of the top mortgage companies in the US. Primary Residential Mortgage, Inc. has the national presence to leverage better rates, but local enough to understand the market.
Why wait? Get in touch with us today.