In many cases, homes that would qualify for the 203K loan are in nice areas but have aesthetic problems. This program—because the home improvements are built into the loan—opens the whole market to the average home buyer.
From Lowe's (a 203K Home Improvement Specialist) web site, here are some of the 203K benefits:
- Only 31/2% down payment required, which can be gifted by family members
- More flexible qualification requirements allow those with less than perfect credit to purchase a home at competitive rates
- A single loan for both purchase and improvement of your home means you make only one loan application and pay one set of closing costs – saving you time and money
- FHA loans are assumable and there are no prepayment penalties
- An FHA Energy Efficient Mortgage (EEM) can allow you to qualify for a larger mortgage to add additional improvements that will lower your utility expenses
- By including cost of renovation in your home mortgage, you pay for these improvements over time at a much lower interest expense than conventional alternatives
- Rather than paying a premium for a home in “perfect” condition, take advantage of the great prices available on foreclosures or other homes on the market that are in need of repair or remodeling
- Instead of paying for a previous owners improvements you may not desire, invest instead in exactly the features, colors, styles, etc. that suit your tastes and needs
- Enjoy the opportunity to live in an up-to-date home in a great location closer to work, shopping, cultural activities and more
Visit Lowe's page of FAQs to learn how easy it is to get started with the 203K program.
Contact me to introduce you to a lender who can guide you through the mortgage process. I'll help you find the property. If you want a project - you don't have to do the work yourself - and see the great values available now in Hawaii Kai - contact me and let's get started.