203k - The Advantages
- Minimum of only $5,000 in repairs/updates
- Same low 3.5% down payment as a regular FHA loan
- 30 year fixed rate loan, no surprise jumps in P&I during life of the loan
- Close before repairs begin...sellers (and agents) love this
- Major items ARE allowed (foundation, roof, mechanicals, etc.)
- Only one closing, with money disbursed on a draw basis after closing
- Loan amount can go as high as 110% of the "after-improved value"
- 30, 60 or 90 day options to complete renovations
- Buyer can include optional renovations, after mandatory repairs are addressed
- Buyer can finance house payments if unable to live in the property while repairs/renovations made
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