There are thousands of home loan options available for people like you who want to rehabilitate their home. The amount of information available makes it seem like a daunting task just to find one rehabilitation loan that fits your need and budget. The problem with most of the information you find is no more than selling a product that is found from virtually any lender found anywhere. The point is, the information is useless and does not provide any nuts and bolts that truly helps you find the perfect home loan. So, it is time you find the one program that fits your need, starting right here.
The FHA 203K Home Loan Program
The Federal Housing Administration offers what is known as the 203k Home Loan Program. Under the umbrella of the 203k lie a number of sub-programs that fall under the guidelines outlined by the FHA. The sub-programs under the 203k category is where the biggest problem lies in finding the perfect loan, which one do you choose. However, 203k Home Loans must remain the main focus. The programs are simple, quick, easy to understand and provide the best terms available in comparison to any type of conventional loan. The program offers an even faster approval process if you are looking to purchase a home and begin to make repairs on the home before the loan even closes.
Some Basics Behind the 203K
Keep in mind the program is for the use of borrowers who are looking to purchase a home and immediately begin repairs or those who are looking to refinance an existing home and use the funds allocated to rehabilitate the home. The sub-categories include the regular 203k which is used for structural repairs. The other is the streamlined refinance program for non-structural repairs. It is important to keep in mind that the home must be owner occupied; therefore, you must live in the home.
The Benefits of the 203K
The beauty of the program is the low interest rates, little to no closing costs and less paperwork than conventional loans. For the 203k Regular Home Loan Program, many borrowers are able to purchase the home with little to no money down. A streamline refinance also offers borrowers low money down options because most FHA loans are not necessarily credit score driven.
A great example of a mortgage company that gets you into the perfect 203k rehab loan is Prospect Mortgage. Instead of a long presentation that is full of red tape, expect to find why the 203k is such a streamlined program that is simple for you in all aspects, from start to finish.