Often times home buyers are turned off at the sight or even the thought of a buying a fixer-upper, foreclosure, or even an outdated home. You may find a great deal, but the upfront construction costs are prohibitive and overwhelming.
Educated and informed home buyers, on the other hand, are utilizing the FHA 203k loan to buy and renovate their new homes with little or no additional out-of-pocket costs. In fact, the FHA 203k loan is a tool used by savvy home buyers and home owners since 1978.
An FHA 203k loan is very similar to the traditional FHA loan (FHA 203(b) loan). The main difference is that with the FHA 203k loan, home buyer/home owner is adding money to their mortgage loan to finance any repair or improvement costs.
A traditional mortgage requires the property to meet certain condition requirements before the loan is funded, the FHA 203k loan allows the borrower to purchase or refinance their home and complete the improvements after the transaction closes.
At Zelaya Properties we work with these savvy, adventurist home buyers all the time. Helping them transform their new investment into the home of their dreams.