Suppose you find a house you absolutely love, but it needs an updated kitchen or bathroom, or just simply needs new carpet and paint…well no worries!
The 203(k) loan allows you to acquire the “fixer-upper” and make it your own. The 203(k) program is perfect for buying dated properties, foreclosures, or short sales that have been neglected or need some TLC.
There are two types of 203(k) loans – the regular 203(k) and the Streamline 203(k). The main difference between the two is dependent on the scope of the repairs/renovations and consultant requirements. If your scope of work exceeds $35,000 or includes items like mold remediation or major structural changes to the property, it requires a full 203(k). You will have licensed 203(k) consultant help you by providing a feasibility study, assist you in developing your scope of work for the property, and they will provide you with a budget and bid package so you can select a contractor and know what to expect from a cost standpoint. This is especially helpful for those who are not as experienced in doing home renovation projects. If your list of repairs/renovations is less than $35,000 and does not require a consultant, then the Streamline 203(k) simply requires you obtain estimates from licensed contractors and you are on your way!
If you have any questions about this wonderful program, please let me know. I have been processing 203(k) loans since 2003 and would love nothing more than to share my knowledge and experience with you, walk you through each step of the process and help you achieve your goal of buying and renovating a home to make it into the home of your dreams!
Don’t forget, we lend in Maryland, Pennsylvania, Virginia, West Virginia, and Delaware. All in-house local processing, underwriting, closing and funding. Your loan stays in our office from start to finish. Compare our rates with anyone out and see how competitive we are. Happy house hunting!
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Stuart - Good info on the 203k. Because of efforts like this, the use of the 203k has increased ~650% since 2007.
ReplyDeleteJust as it is important to use a lender like you with 203k experience, it is also equally important to use a contractor who has been properly educated on the 203k or who has 203k experience, such as a Certified 203k Contractor.
Keep up the good work of promoting the 203k and the benefits it provides!
Thanks for the input 203k Contractors!
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