Cathy's Home Buying Tip #9
What is a 203K loan and why should you know about it?
A lot of good deals in the Northern KY real estate market come from the foreclosures, estate sales, short sales and seller's who need to sell immediately. Unfortunately, many of these types of homes also need extensive repairs in order to bring them up to livable standards,.
The good news is there is a loan you can apply for that is called an "FHA 203K loan" which is simply known as the "rehab loan". A lot of buyers go this route in order to get the "extra" money they need to fix up their new home. That would include items such as fixing electrical, plumbing, drywall, etc.
Now here's the interesting part...if your new home is in fairly good condition and you just want to replace some appliances or put in new carpeting and paint, the FHA 203K loan may also be your way to acquire that much needed additional money! Most buyers don't know this loan can be used for homes that you want to upgrade, but of course, there are guidelines for this situation, so always be sure to check with a good lender to answer any of your FHA 203K questions. At least you now know to ask about it!