203K Rehab Mortgage Loans
Understanding How Rehab Loans in Florida Work
When you are looking for a home, you look at a number of factors that can affect how much you can get in a loan. Often times, when a property is being sold at a slightly lower price than what’s appraised at, it’s because it still needs some additional work to be done on it. The unfortunate part is that a majority of mortgage loan programs necessitate that all repair/rehab work be completed before you can secure the financing for the purchase transaction.
The Ideal Loan Option for “Fixer-Uppers”
The fact is that most first home buyers don’t really have the funds to invest in any property before they actually secure some type of financing. The one workaround is to opt for 203(k) Rehab Loan from an approved FHA lender.
This popular FHA mortgage program is specifically-designed for those buyers who are looking to flip-homes or those who don’t mind putting some elbow grease into their home to make it perfect.
The Benefits of Rehab Loans in Florida
This particular loan program is an ideal option for agents who are attempting to sell any homes that require repair. There are some distinct benefits to applying for a 203(k) Rehab Loan:
- Great Savings
- Low Down Payment Required
- Great Property Deals
203k Rehab Loan Process
The Federal Housing Administration is part of the Department of Housing & Urban Development and offers this particular loan program. It provides a loan that will cover for the repairs that are needed to make the home livable. A single loan pays can pay for the cost of the entire remodeling process.
However there are two types of 203k “Rehab” loans that a lender can give. They are the regular 203k loan and the streamlined 203k loan. The regular loan is given for properties that need structural repairs, like a new roof or an added room; the streamlined 203k is only given for nonstructural repairs such as painting, flooring, and new appliances.
The properties that can be covered under this program include single family homes, condominiums, and town homes. It is available only for homebuyers who are buying a primary residence which they are going to occupy.