Section 203(k) insurance enables homebuyers and homeowners to:
- Purchase a property and repair/renovate it.
- Purchase a dwelling on another site, move it onto a new foundation and repair/renovate it.
- Refinance existing indebtedness and repair/renovate a property.
- Repair/renovate a presently owned property.
The standard 203K loan can cover structural repairs as well as repairs or home improvements over $35,000
Normally a short term loan, often referred to as a construction loan, is needed for home improvements. However, Section 203(k) offers borrowers and lenders a single, long term, fixed or adjustable rate loan that covers both the purchase and rehabilitation of a property.
This loan saves the borrower time and money while protecting the lender by allowing them to have the loan insured before the condition and value of the property has been established.
The Standard 203K will require that an approved 203K Consultant be involved with the project however the 203K consultant fees can also be wrapped into the loan if need be.Google+