Great Home Buying Option in Indianapolis, the FHA 203k Loan

I absolutely love old houses. They have charm, character, and history that one cannot typically find in a newly built home. When properly restored they come to life like a work of art.

We have some great historic neighborhoods here in Indianapolis, IN such as Irvington, Herron-Morton, Holy Cross, The Old Northside, Fletcher Place, ect. that can tend to get fairly pricey sometimes. That hefty price tag can at imes be out of reach for some buyers. I work with many clients who want a historic home but the asking price just isn't in the budget. My solution...use the FHA 203K rehab loan.

With the current market conditions you may be able to find an older fixer-upper in the neighborhood you want to live in, have the repairs/ rehab done, and be well on your way to creating additional equity. Maybe it needs new carpet, paint, a furnace, and windows. No problem! It doesn't have to be in a historic neighborhood either. Mid-century and even newer houses that need some TLC can also be good candidates for the program.

The FHA 203K rehab loan allows a buyer to to purchase the home and finance the repairs into one mortgage. There are two versions of the program; the streamline 203K (baby K) and the full blown 203K. Each has it's place and purpose depending on the amount and type of repairs to be made to the home.

Not all homes are good candidates for the program. Your first step should be to contact a real estate agent and lender familiar with the ins and outs of the program as well as the areas you are considering. They will be able to help you do an initial assessment of the subject property to see if it might be a good fit.

If you love older homes and catch yourself constantly watching re-runs of This Old House on PBS, this just might be the perfect option for you. =)

Mike Perron, RE/MAX Ultimate, Indianapolis, IN

www.IndyBetterHomes.com