One great way to buy a home in 2010 is to use the FHA 203K Renovation Mortgage. The 203K loan is designed to loan you money so that you can do minor repairs, upgrades, energy efficient improvements, minor remodelling and renovations to a home that you are looking to buy. This loan is perfect for buying a foreclosed home.
The FHA 203K Mortgage can also be used in combination with a FHA refinance or streamline refinance mortgage.
Who Can Qualify For A FHA 203K Mortgage?
You may qualify for the 203K renovation loan if you:
Plan to live in the home once you buy it,
Already own your home and need to do some minor repairs, upgrades or remodelling,
If you represent a non-profit group and are buying the property for your group.
What Type of Mortgage is the 203K Mortgage?
The 203K loan is offered as a 30 year or 15 year fixed interest rate mortgage, or as a FHA 1 Yr ARM.
What Kind of Property Qualifies For the 203K Renovation Mortgage?
Single Family Homes
Multi Family Home up to 4 units (you must live in one of the units and you can increase or decrease the number of units with this mortgage if there are no significant structural changes)
Townhouses or Townhomes
Mixed Use (store front with a residence attached – again you must occupy the property)