Why should buyers consider FHA 203K loans? Because of this market. The competition is fierce with low inventory. Many homes left are in need of a repair…..This is where a 203K loan can leverage a buyer to get into a location or school system previously unaffordable.
203K FHA loans are rehab loans. There are two separate loans. The shorter version called Streamline 203K FHA up to $35000 would fit many buyers needs….It is built into your regular loan, allowing you to take out funds for upgrades such as new roof, new windows, new appliances, new HVAC, new flooring etc as long as the items wanted repaired or upgraded are itemized out with bids and provided up front to appraiser and lender to be approved. Money is then disbursed as items are completed with receipts from the vendors showing completion and date etc.
With the inventory as low as it is and those homes available needing a little help but as a buyer you are a little cash poor after down payment, talk to your loan officer about the FHA 203K loans.