FHA 203(K) Standard Home Loans

Work Wonders With an FHA 203(K) Loan

Thinking about buying a fixer-upper? With an FHA 203(k) rehabilitation home loan from CrossCountry Mortgage, Inc. you can finance a variety of repairs into your loan.

What Are The Benefits?

Buying a house that needs rehabilitation can often be a complicated and costly process. Repairs can drain your savings or investments. Interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. An FHA 203(K) Standard loan can save you time and money because it combines the purchase cost and the repair cost into a single fixed-rate or adjustable-rate mortgage.

An FHA 203(k) loan may allow you to consider a home that needs rehabilitation if you’re looking to purchase. With this type of loan, you may benefit from lower interest rates and costs associated with repairs and modernization as compared to financing repairs through other methods like home equity lines of credit, credit cards or personal loans. The interest you pay on your mortgage may be tax deductible, and repairs aren’t stretched out over months or years. You can customize the home to meet your needs. Improvements may also increase home value and resale marketability. However, more parties and steps are involved with FHA 203(k) loans, including appraisers, consultants, contractors, and inspectors. Additional costs may apply.

Eligible vs. Ineligible Borrowers

Eligible vs. Ineligible Properties

The property must have been completed for at least one year.

Requirements

Homes must be occupied by the owner. No second homes or investment properties. Transaction must be a purchase loan or refinance. Identity of interest (buying from a relative or business partner) is not permitted. Loans are subject to certain appraisal and construction requirements

The FHA 203(K) Standard home loan requires a minimum of $5,000 in repairs but has no maximum limitations (appraisal required). A HUD consultant and one general contractor will be required.

Our team is ready to help you identify and obtain the right home loan or refinancing solution for your needs. Whatever your situation, we’ll be by your side from start to finish, keeping you informed and getting your loan closed quickly.

Stop looking for your dream home and start creating it with an FHA 203k loan.


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