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203K - THE EXTREME MAKEOVER™ HOME LOAN
Help expand homeownership opportunities by offering a renovation program to people who want to revitalize the communities they serve.
I’m here to assist you in making the rehab loan just like any other loan you have experienced in the past (if you had a good banker!). Since we are a direct lender, we take on the burden of facilitating with the construction, appraisal and funding of the loan. You, the real estate professional get paid at closing!
SO WHAT IS A 203K LOAN?
A 203K loan works much like a regular FHA mortgage. The difference is that it allows your buyers to fix, repair, or fully remodel the home they're buying and finance it up to a 110% future value of that home. They can use the difference of the purchase price and the future value towards remodeling costs. Here are some details:
- Purchase and rehabilitate home completed for more than one year (model homes may qualify)
- 30 Yr Fixed rate comparable to FHA 30 Yr Fixed rate (also available in year fixed-rate and terms in 5-year increments or 30-year 1-year ARM)
- Rehabilitation construction must begin within 30 days of closing, and all work must be completed within six months of closing
- If contractor is used they must be licensed and bonded, borrower can complete work themselves if it is done in workmanlike manner
- Most improvements are eligible provided they add value and are permanently affixed to the foundation
- Structural alterations and reconstruction (repair or replacement of structural damage, chimney repair, additions to the structure, installation of an additional bath(s), skylights, finished attics and/or basements, repair of termite damage and the treatment against termites or other insect infestation, etc.)
- Major landscape work and site improvement
- Improvements for accessibility to the Handicapped (e.g., remodeling kitchens and baths for wheelchair access, lowering kitchen cabinets, installing wider doors and exterior ramps, etc)
- New free standing range, refrigerator, washer and dryer, trash compactor
Below is a link of some more frequent questions that my real estate agents have asked.
Click here for FREQUENTLY ASKED QUESTIONS (FAQ's)
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