Tuesday, January 11, 2011
Did you know you can finance a foreclosure and rehab it all in one loan?
It's true! There's a product that is easy to use called a 203K. It's actually an FHA loan, with 2 options. For projects that need less work you can do a streamlined version for up to $30,000 worth of renovations. If you have a more extensive project, you can go up to the loan limit on the FHA. Either loan allows you to buy a property that needs work and appraise out at the fixed up price. Now you don't have to be afraid of homes that are needing some TLC. Let me show you the process. Call me!
1 comment:
HI Caroline. Great to see another agent get on board with the 203k. The more you keep spreading the good news about the 203k, the more people will use it. One thing to clarify though. The Streamline 203k has a max rehab of $35K, according to HUD guidelines (see Mortgagee Letter 05-50. However, some lenders limit the streamline 203k rehab to $30K to allow for a 10-15% contingency reserve.
As with all things, consumers should use experiended/knowledgeable professionals to help them, especially with the 203k. Buyers buying a home using a 203k loan in the Chicagoland area will benefit by having you assist them and the same is true for contractors. Use a Certified 203k Contractor for your 203k needs located at the 203k Contractor Directory http://203kContractors.com.
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