A 203K Home Loan is an FHA-backed mortgage designed to help borrowers buy older homes that require significant repairs. The borrower should approach an FHA-approved lender to obtain a 203K mortgage. He/she should furnish a detailed proposal on the types of repairs that are needed for the home. There are two types of 203K loans. The first type is the standard 203K which are given for properties that require structural repairs, adding a new garage, landscaping, and remodeling. The second category is the limited 203K mortgage. These loans are given for new roofing, energy conversion improvements, new appliances, and non-structural repairs. This read offers information on 203K home loans.
Certain properties qualify for the 203K loan scheme. These properties include:
. A torn down home with some of the existing foundation intact.
. A one to four member home which has been completed within the past year.
. The home should not be a co-op, but some condos are eligible for this scheme.
The main benefit of this type of loan is you get the chance to buy a home that requires repairs for a lesser value compared to the purchase of a brand new home. The down payment required are minimal compared to most of the other mortgage loans on the market today. On the other hand, you get a decent interest rate on this type of loan when you choose the best FHA-approved https://www.franklinfirstfinancial.com:- Home Loans to obtain the loan. This is why it is important that you select the right FHA-approved lender on the market. With a host of banks out there, choosing a reliable lender is not an easy task. That’s where you should do the research required to find the best bank on the market. It will help avail yourself of the best 203K loan on the market.