203K Loans Can be Used for More Than Just Gut Jobs

Buying

HGTV is a fabulously popular TV network.  And why shouldn’t it be - home selling, purchasing, renting, renovation, maintenance and decoration are subjects that appeal to people of all ages, backgrounds, etc. you name it – and there are hundreds of millions of said people in the good ole US of A.  Fixer upper type shows are among the most popular of home network TV shows.  Often, you’ll see a host of one of these shows tooting “the worst house in the best neighborhood” as their ideal, which is then purchased and magnificently remodeled and into something fit for an urban, suburban or rural king and/or queen. 

But what if you don’t want the worst house in the best neighborhood?  What if you can’t find a foreclosure that you like in 1 of your neighborhoods of choice?  What if you don’t want a lengthy remodel or to do a complete gut job on the kitchen and all bathrooms?  Well, there’s good news if you answered yes to 1 or all 3 questions.  You don’t have to.  You can buy a standard sale (in other words, a non-bank owned/foreclosure) in good condition with some of your must haves, at the lower end of your budget, and make renovations using a rehab loan.  HUD offers a 203K loan for this purpose!  There are stipulations on how this loan can be used, and it does affect the interest rate of your loan, but the rate is still attractive and the other benefits associated with an FHA loan are intact. 

So, you can have your dream home – complete with all your personal stamps and flair – without breaking the bank (or waiting another 20 years).  More keys to this dream-becomes-reality: a reliable contractor that's also knowledgeable about the 203K process, a reputable lender with a dedicated renovation division, and a highly competent real estate professional to help tie the entire process together as seamlessly as possible.   

What I’d most like for you to take away from this blog article is possibility.  The possibility that you can not only dream of designing your dream home – with all the bells and whistles of your personality, style and taste – but you can also have it!  Not 20 years from now, but when you're ready to buy your next or first new home...whenever that may be.  

-  Andrea Watkins (January 19, 2017)