In the world of loans and mortgages of today 's roller-coaster economic playground, it is easy for the non-detail oriented person to get lost in the sea of terms and numbers floating around that are ambiguous to say the least. A person might not understand all the language that they must sift through with a magnifying glass in one hand and a dictionary in the other that there are some ways to easily get an FHA loan. If you’re looking at purchasing a fixer upper or making some major repairs to your current home then you might want to consider looking into the FHA 203k loan program.
Simply put, an FHA 203(k) loan program allows the borrower to add necessary repairs needed to the house they are purchasing to the total…show more content… It is easier and less time consuming than having to go through different private entities to secure the funds you might need to start the repairs on your fixer-upper home.
The difference between the FHA203k and other more traditional loans is that, normally a lender will only want to secure the loan AFTER the property value is secured. The lender wants to know the EXACT value of the property being bought BEFORE they guarantee a loan. When a borrower wants to buy a fixer-upper, or wants to do major remodeling of an existing home, it is hard to estimate what the value of the property “will be”. This makes lending money from the lender 's point of view much less attractive and it then becomes a high risk. They get out their 10 foot pole and start backing up from the loan when they can 't get an accurate account of the property value. This is what makes the FHA 203k loan more efficient when a borrower is interested in buying a property that will need repairs. It is important to realize that getting an FHA 203k purchase loan is not all rainbows and butterflies. There will be some hoops you will have to jump through. Be prepared to have your credit and supporting documentation ready to make the whole process more streamlined. You will be given a time limitation to make said improvements, typically, within 30 days. Stricter regulations and guidelines that are