203k Renovation Loan You Don’t Need to Move Out to Move Up

Real Estate Agents, Loan Officers and Brokers are trying to adjust to today’s real estate market and find more buyers. Declining markets, credit tightening, and the disappearance of loan programs are just a few of the problems, some markets are filled with foreclosed homes that have suffered from disrepair and neglect. The majority of the banks that own these foreclosed properties are unwilling to repair these homes. As such, many of these houses do not quality for FHA loan programs, in many cases, they just do not meet the minimum standards in order to quality as habitable for the FHA.

One solution could be the 203k Renovation loan. It’s a way to combine the cost of the renovations and the mortgage into one loan. This loan program provides the funds for both the home renovation and home purchase. The maximum loan amount depends on FHA determined loan limits which are set on a county basis.

For example, on the low side, a single family home in San Bernardino has a loan limit of $500,000 for a single family home and $640,100 for a two family home. In California, the maximum loan amount for a single family home is set at $729,750. You can find HUD county limits by going to http://www.203kRenovation Loan.com.

To be sure there is more involved in completing a 203k renovation loan purchase than a traditional loan, however most 203 renovation loans loans can close within 30-60 days from start to finish. As to the additional effort that is required, that extra work can translate into a new home for someone that wouldn’t have otherwise had.

With 203k loans, more work equals more home for less money. Here are some of the potential benefits of a 203k loan:

Low Down Payment, Move into a renovated home with a warranty, Increase maximum, Mortgage by up to 20% with the installation of qualified solar energy equipment, 1-4 Unit Owner Occupied Homes

If you want to see where the real deals are in a market filled with REO listings, the FHA 203k loan can be a useful tool

FHA 203K Renovation Loans – You Do not Have To Move Out to Move Up! You can refinance the home you are living in right now. Its easy to do.

FHA down payment (3%) Flexible credit qualifying Assumable loans Finance up to 6 months of mortgage payments Purchase or Refinance AND IMPROVE all in one loan Upfront mortgage insurance waived. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.

Before you look at buying a REO you should learn what the 203K Renovation Loan can do for you.