203K Loans Made Simple For Home Buyers
Everyone wants to have their own home. However, money often seems to be the problem.
Fortunately, there’s a decent solution to getting your very own house. You might want to apply for a 203k loan.
It is a loan backed by the Federal Housing Administration (FHA). It allows for both home purchase and repair. It can be easily approved by the lenders because it’s less risky, being guaranteed by the government.
A standard 203k loan covers the following:
- Structural repairs
On the other hand, a streamlined 203k loan covers the following repairs:
- Non-structural (painting, etc.)
- Energy conservation improvements
Generally, 203k loans cover the repairs for:
- New siding
- Home extensions (second story, new rooms, etc.)
- Heating and air conditioning systems
However, 203k loans do not cover the addition of amenities such as a swimming pool, tennis court, and the like. Also, it will not cover improvements that do not form a permanent part of the property.