The 203k loan has been around for quite some time. This 203k loan is an alternative method of financing for homes which require substantial repair and the seller is not willing or able to make repairs.
Details about a 203k loan
203k loans allow you to FINANCE the cost of the repairs in the new loan amount. (Not to exceed 110% of the after improved value determined by the appraiser and 203k consultant). What does this mean? I buy a house for $200,000 that needs $50,000 in repairs and I can borrow the extra $50,000? Too good to be true? NOPE. That's it in a nutshell....
Down payment is based on the sales price PLUS the final cost of the repairs x 3.5%.
Call me at 301-452-4767 with any real estate questions!
No comments:
Post a Comment