FHA 203k/Rehab Loans
An FHA 203k loan, also known as an FHA Rehab loan, is a type of mortgage insured by the Federal Housing Administration (FHA) that makes it easier and more affordable for the borrower to purchase a property in need of renovation. Basically, it allows you to include the costs of fixing up the property in your mortgage loan, so that one loan and one closing can wrap up needed repairs. This makes it more palatable for buyers to acquire “fixer upper” properties that would otherwise be difficult to obtain with a mortgage loan.
The amount of an FHA 203k/Rehab loan is based on the price of the home plus the estimated cost of repairs (including labor and materials). The process often entails putting together a detailed estimate of the costs, getting an appraisal of the home’s current and future value based on the proposed renovation, and other documentation.
Legacy Park Mortgage can assist you with all these details in an effort to help you qualify for an FHA 203k/Rehab Loan and close quickly.