You have been searching and searching for a new home within your price range. What you are finding are houses that are best described as "a fixer upper", "has great bones but in need of TLC", "stuck in the 1970's - does lime green sound familiar". What has been your reaction to these houses? "No way, we can't afford to buy the house AND do any work!"
Well, did you know that the Federal Housing Administration (FHA) has a program for that? The FHA 203k Rehab Loan allows for the cost of renovations to be included in your mortgage. By considering this program, many more houses may open up to you as possible choices.
The 203k Rehab Loans allows for a variety of repairs to the home. It can be used for such things as painting; minor repairs; updating kitchens, bathrooms or flooring; plumbing and electrical work; among others. A validated contractor will be required to provide estimates on the renovations as well as complete the work within 6 months.
The FHA 203k Loan is a great option to help improve a potential home, but the process may take longer than other loans so be prepared to be patient. By working with a REALTOR®, you will be guided throughout the process which would include putting you in contact with the right mortgage professional who knows the ins and outs of the FHA 203k Program and can qualify you.
When you are ready to buy, choose the Lawyers Realty Team – a REALTOR plus a Real Estate Attorney at no additional cost. It is Added Value & Protection for buyers. (717) 364-300 or visit LawyersRealtyPA.com.
What is one of the primary factors that go into a lender's decision of whether or not to grant a loan? Credit scores. It has been estimated that nearly 75% of all mortgage loan decisions are made with the applicant's credit score in mind.