You’ve been on the lookout for a house for a long time now. Finally, you find a beautiful house that would be anyone’s dream home. Well, almost. It’s a fixer upper in dire need of an overhaul before anyone can truly call it a home. The roof, the deck, the patio… A lot of work needs to be done on this property. But you strongly believe in it. With the right amount of tender love and care this house is capable of transforming into a slice of heaven. So what do you do? Do you take out one mortgage to buy the house then another one to do the repairs? Do you use your savings to do the repairs? Do you borrow from friends? Ultimately, you want value for your money. If you’re going to do repairs, it had better drastically increase the value of the house and your equity in it, and all those loans better not get you swamped by interest payments. Enter 203K contractors.
We here at 203K contractors understand this dream that many people have and we’re committed to making it come true for as many people as we can. The federal government backs FHA 203K loans so people who want to purchase houses that are fixer uppers can get financed for the cost of the property plus extra to remodel the house. Most banks will not give you a loan to purchase fixer uppers because they are categorized as uninhabitable. This is where the FHA 203K loan comes in. There are numerous advantages associated with getting an FHA 203K loan as opposed to other alternatives:
· The 203K loan lets you keep your savings for other uses. Remodeling a house is no joke, and having to do it out of your own pocket exposes you to a whole host of risks, the greatest one being that you simply might not have enough. The FHA 203K loan lets you repair your new home to your own specifications but have someone else pay for it.
· While you’re borrowing money to remodel your house, here’s something ele to make you sleep better at night: It’s cheaper than other loans. 203K loans charge lower interest rates than othe rehab loans available on the market.
· The FHA 203K loan allows you to access those bargains you normally wouldn’t be able to. Most loans out there limit you as to the type of home you can purchase. With an FHA 203K, you get to hunt for better bargains knowing you’re fully covered.
· An FHA 203K loan usually includes a “contingency reserve” of up to 20% the amount of the loan. This covers any costs that spill over your initial budget and allow you to finish your remodeling project.
· FHA 203K loans give provisions of up to 6 months so you can comfortably work on improving your new home and making the mortgage payments, but live somewhere else in the meantime.
203K contractors care about you and would like to see you get that dream home hassle free. Talk to us about getting your FHA 203K loan today.