Any time you can find a government program that excludes investors and is only limited to occupants or users, the odds are good that the terms are relatively advantageous. This is the case with FHA 203k home improvement loans, which provides an opportunity for home-buyers to receive a mortgage that also covers the cost of future/current home repairs as part of the initial loan that you receive.
If a homebuyer is looking to purchase a $250,000 property, but sees that the kitchen has not been updated since the 1970s and will need $30,000 in repairs, an FHA 203k loan can give you a single loan that consolidates both the home purchase and the improvement into a single loan.
There are six important factors to weigh when thinking about a 203k loan.
First, the total amount that can be borrower under this FHA provision is 110% of the home’s purchase … Read the rest of this article!