The majority of mortgage loan programs require a property to be in sound condition with no structural defects or required repairs; however, not the 203k. The 203k was designed for homes needing anything from a slight makeover to more in-depth improvements, major repairs or new additions. With a 203k loan, a home buyer can:
1. Combine the Purchase and Improvements – The 203k covers your purchase price, as well as the cost of improvements. Any proposed work must be supported by a “value upon completion” appraisal. Instead of creating debt by using credit cards or dipping into savings, you can save money by financing renovation costs into the original mortgage.
2. Create the Perfect Home – Having trouble finding the right house in the right location? The 203k is the answer. With the 203k, you can take a house in the right location, add your own improvements and personal touches, and turn it into exactly what you were looking for.
3. Minimize Out of Pocket Costs – A 203k loan can be obtained with as little as a 3.5% down payment. Other great features include: the ability to use gift funds, the ability of Sellers to contribute toward closing or your ability to roll any costs into your loan amount.
* InterLinc Mortgage Services, LLC. NMLS ID: 205696. InterLinc is an Equal Housing Lender. DISCLAIMER: This is not a commitment to lend. Credit and collateral are subject to approval. Other restrictions may apply. Programs, rates, terms and conditions are subject to change without notice. www.nmlsconsumeraccess.org.