You found your Capital Region dream home …
So you have been searching and searching for your dream home in the Capital Region and finally, there it is. Right in front of you. Location… check. School system… check. Price range… actually, it seems like a bargain. Step inside. OK, time out. Kitchen is from the 40’s. Bathrooms are pink. Pink tile, pink floor, pink sink, pink toilet. All of a sudden, you’re thinking… not for us. But wait, you can make this work. Here’s how.
FHA 203k Loan
The FHA 203 k loan is perfect for a house in the Capital Region that needs some work. Here are some of the details.
The FHA loan will be for the mortgage plus the cost of the repairs. The banks appraiser will appraise the house for a price that would include the repairs.
You need as little as 3.5% down to qualify.
A contractor will work with the bank. An estimate will be done. The representative will review the costs. As repairs are made, the bank will inspect the work and release the funds.
You can also purchase appliances once certain thresholds are met.
The cons… There are some added costs associated with the loan. You will have to get a contractor to provide the estimate up front. It could be a longer approval process.
I have had several clients go through the 203k loan and I can say, they were very happy. It also can be a relief to a seller who otherwise might have a problem finding a buyer for the home. If you have any questions, ask me. I know stuff!