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Why You Should Consider a 203K Loan in Baltimore Real Estate?
What is a 203K Loan?
A 203K Loan is essentially a Rehabilitation Loan. It allows home buyers to purchase a home that needs repairs and just get one mortgage loan to finance the acquisition and the rehabilitation of the property. The mortgage amount will be based on the projected value of the property once the repairs are completed.
How It Is Different
The 203K Loan differs from other loans in that the lender will allow you to obtain one mortgage loan and roll the cost of repairs into that one loan. Traditionally, when rehabilitation is involved, lenders require improvements to be completed prior to a long-term mortgage being made. So, the buyer must first obtain a loan to purchase the property, then additional financing to complete the repairs. Once repairs are finished, then the lender will issue a permanent loan.
The great thing about the 203K Loan is that it allows buyers to purchase properties that they wouldn’t normally consider due to needing repairs. This loan process makes for an easy way for the buyer to purchase the home, make the repairs and only worry about finding financing once.
Who Can Qualify
There are regulations to the 203K Loan, but it is not just for foreclosures. Really anyone can qualify for this type of loan.
This type of loan can be utilized for single-family homes or condominiums. There are also some required improvements that must be made to the property in order to qualify for the 203K Loan. For more information and a full list of requirements visit www.hud.gov/offices/hsg/sfh/203K/203Kabou.cfm.
Calling all home buyers! This is your opportunity to purchase a home and make it your own!
Yaffe Real Estate would love to answer any questions you have regarding 203K Loans…leave us a comment or call us at 410-902-1100!