We have all seen them. The houses that look like if they had a knife they would attack us. The houses that children’s nightmares are made of. These homes are not always a bad thing, especially if we know how to use a FHA 203k mortgage. A 203k mortgage is generally available for a home that requires more than $5000 or more in order to bring it back up to livable condition. A 203k differs from a 203b as the home using a 203b require no more than $5000 and it is a little less complex than a 203k mortgage.
Because we write about 203k mortgage a great deal and we have worked on so many homes using this type of mortgage USHUD.com is very comfortable with the loan program. It is not that the mortgages are too complex there are just a couple of additional steps that 203k mortgages require over a conventional FHA or conforming mortgage loan. The value of having the ability to change the home to meet the buyers particular requirements should not be overlooked and the fact that so few people see the home that needs repairs as an opportunity makes the opportunity that makes greater for those that have spent a little extra time and have the knowledge to take advantage of what many believe to be the best loan program on the market today.
Any of the homes that are pictured here could be made beautiful again if the buyer that looked at the home saw beyond the scary exterior and were able to see the possibilities of what the house could be. A home is a blank canvas with a 203k loan and the options are almost limitless. What we need to do is see the bones of the home and then remember that the 203k will be limited to the value of the home after the repairs are made. The local FHA guidelines will also apply but these are small hurdles as compared to requiring that the funds for repairs come out-of-pocket after buying the home which is what most people think is the only option.
To read more select the link below http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kmenu