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203(k) Loan Info
| | Monday, February 03, 2003 @ 10:43 AM EST
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Contributed by: Daniel Cobb
Daniel Cobb Properties
Read more archived articles about Rehabbing
It doesn't matter if you are new to the real estate investing business or have been a real estate investor for years, one thing that you will eventually encounter is the need for capital to either buy property that needs repairing or repair property that you already own. The problem is that most lenders do not want to finance borrowers for the purpose of buying or repairing property that are fixer uppers or handyman specials. This is because lenders often see this type of property as an unstable investment. Even if a borrower does find a lender that will finance them for property that is in need of heavy repairs, the loan amount will be based on a percentage of the current value of the property. Unfortunately, this amount is usually not enough to do all of the repairs or work that is needed.
A simple solution to this problem is
the FHA 203(k) loan. The FHA 203(k) is a loan that is secured by the Federal Housing Administration that is used by borrowers for the purpose of fixing up or rehabbing real estate.
Some of the advantages of a FHA 203(k) loan are:
· borrow up to 110% of the after
completion value of the property
· take out one loan to cover a property's
purchase price and cost of rehab
· refinance existing housing
· finance 100% of the cost needed to
improve property
· and much more.
To apply for or learn more about the FHA 203(k) loan contact your local FHA approved lender.
Note: Daniel Cobb has written the EBook Complete Guide To Investing In Real Estate Through Government Scavenger Sales.
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