When housing inventory is low, many may find it difficult to find their dream home. For some buyers, a house which needs a bit of work may be a better option. Rehabilitation loans, like the FHA 203K loan, allow home buyers to purchase a home and borrow funds to make needed repairs. There are requirements involved, and the home must appraise, after repairs, sufficient for the total borrowed. However, repairs can be more than just what’s required to fix issues, they can also include upgrades and improvements. This can be a cost effective solution for those who want to build that dream home but can’t wait for or afford new construction. FHA 203K loans often have lower payment requirements and require lower down payments than conventional loans making them more affordable. One of the early steps in using a FHA 203k loan is to set an appointment with a HUB approved 203K Consultant to review the home, the budget, and the needed repairs to insure the project is feasible. Your consultant will also prepare the paperwork for the FHA appraiser and loan officer to use in approving the loan. As repairs are being completed, your consultant will also set inspection intervals to confirm the work is completed and to approve payments to your contractor from your loan funds. Using a FHA 203k can mean some additional work and forms, but using the right consultant, loan officer, and contractor will make the process run smoothly and can help your buyer see their dream home hidden in a house others have ignored. Carey Home Inspection has completed several 203K projects across the region and are open to helping your next buyer begin the process.
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