203kHave you ever, if you’re a realtor, listed a house, knowing that it will be tough to show.  The house hasn’t been updated and most homes in the area have been, making this listing impossible to sell quickly.  Or you’re a buyer wanting all the new upgrades to your new house, but the area you are interested in doesn’t have anything listed, ready to move in.

There is the perfect loan for your buyer or product to advertise with your listing – the FHA 203K Rehab loan.

This FHA loan product allows a buyer to acquire financing to purchase plus rehab the property with a onetime closing.

The loan is structured with the purchase price plus the cost of rehab = TOTAL COST.

FHA down payment – minimum 3.5% of the total cost.

For example – $150,000 purchase price  +  $50,000 total rehab  =  $200,000 Total Cost  = down payment 3.5% ($7,000).

And like any other FHA loan, the seller can pay up to 6% of the sales price in closing costs and prepaids, and the down payment can be a gift.

The rehab can be as little as $5,000.  Rehab can include appliances, landscaping, roof, kitchen and/or bathroom upgrades, etc.

There is no self help for work, all rehab work must be done by a licensed contractor.

And like all FHA loans, it can only be used on an Owner Occupied property. This loan product is not for investment properties.

So if you like the location of the house but can’t stand that old kitchen, don’t scratch it off your list.  Discuss the 203K FHA loan with your lender.

America’s Mortgage Resource is one of the few lenders in the area specializing in the FHA 203K loan product.