Thinking of buying a home that needs work such as a foreclosure or short sale, but not sure how to finance the purchase and renovation costs? Consider an FHA (Federal Housing Administration) 203(K) loan. Today’s ChicagoTribune.com has a good article on the loans, “Old loan program finding new life“, by Mary Ellen Podmolik.
One of my buyers recently discussed a FHA 203(K) loan with my mortgage consultant, Michael Polera, after considering a home with a roof that looked like it had been pressed inside a waffle iron. 
While there’s lots of paperwork and you’ll need to get estimates for the work needed, the loans only require a down payment of 3.5%. If you have the patience to wait for the approvals and for the work to get done, it can be great way to buy into a neighborhood you might not be able to afford otherwise. Contact me for more information on these loans!
Similar Posts:
- FHA 203(K) loans great for marketing homes that need work
- 1st Time Home Buyers Can Now Borrow the $8K Tax Credit Upfront!
- What can happen when your mortgage broker has poor service
- Is it Time to Refinance? – Maybe, That is if You Can
- Home purchases above $278,000 with 3.5% down payments must close by Dec. 31st!
{ 2 comments… read them below or add one }
Interesting, I would say that houses that needs reparation are great investments because at the end you can add your own ideas through the remodelation process.
Great post! Many buyers don’t realize the power of an FHA 203k. Homes that would normally be unavailable to FHA buyers are now within reach. Being able to finance not only the mortgage, but also the needed repairs, allows more FHA buyers to buy a larger pool of available homes.
{ 1 trackback }