What is an FHA 203K Loan?
Wednesday, April 15th, 2009For anyone who wants to buy a foreclosed property in Brooklyn, an FHA 203K loan is something you definitely want to know about.
FHA 203K loan is a loan that is based on the after repair value of a one to four family house or a condo (co-ops do not qualify), and allows you to borrow the money needed to make repairs on the property. The current condition of the property is not as 
important on 203K rehab loan as the condition of the property once the 203K renovation is complete.
This type of loan makes it easier to purchase dilapidated properties that have been on the market for many months and have been significantly reduced in price. You can save money on a home and borrow the funds to make needed repairs all at the same time.
What Can a FHA 203K Loan Be Used For?
An FHA 203K Loan can be used to purchase a home and renovate it, or pay off the debt on a property your already own and borrow additional funds to renovate it. The types of renovations that the FHA 203K loan covers are numerous. Here’s a short list of repairs that can be made with a 203K loan:
Total renovation of a property
Bathroom remodel
Upgrading the HVAC
Upgrading plumbing and electrical
Putting down hardwood flooring
Putting on new siding
Interior painting
Exterior painting
Waterproofing the basement
Adding a 2nd floor
Finishing a basement
Adding a Bedroom
Adding a new deck or patio
Making a house “Green”
Making a house handicap accessible
And Much, much more…
Of course there are a few more steps involved in getting an FHA 203K loan approved, but if you want to purchase a foreclosed property, a HUD Home, or any property that needs renovations, or you simply want to make some needed improvements to your present home, an FHA 203K loan can help.
For more information about FHA 203K loans, contact a local lender or go to the FHA website.
If you’re thinking about buying a Brooklyn foreclosure or HUD home, you can also give me a call at 917-544-2662 or email me and I’ll help you find that less then perfect property for a fantastic price.
