Rehab loans- 203K Loan Defined

What is a 203K loan?

Looking to buy a foreclosure or home that needs a lot of "love" before your family can actually call it home? Want to have a low down payment and be able to update and repair your soon-to-be new home without having to save for years? Want to make sure all the honey-do items on your home get done right away and professionally without havint to pay for them all right now?

Then a 203K loan may be right for you!

Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), makes it affordable to buy a home with a FHA home loan, which most people know about. But they also have the Section 203(k) program, which most people don't know about. According to the HUD website, The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it.

Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203(k) with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance agencies have designed programs, specifically for use with Section 203(k) and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing.

Simply put- for 3.5% down payment, you can get a home loan to include the rehab of your primary residence, and that loan is even back by the US government!

If you would like more information about a 203K loan or would like to know how to get the process started, call Dawn Workman with Veracity Real Estate Group. She is a 203K Specialist and is able to help you with the entire process.

Dawn Workman, MBA, Realtor, 203K Specialist

480-540-8100

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