Buying a home in as-is condition to many home buyers is scary thing. Many people want homes in move in ready condition and make things simple. But what if you get a good value on an as-is property? Maybe there’s a broken window, or missing toilets or holes in the wall? A lender will not normally loan on that property at all, those are health and safety issues. But what if everything is in tact but the house looks like a scene from an old 1950′s t.v. show? What if you are getting a good deal but just don’t have the funds to update the home?
Fortunately the 203k loan is available for both of these situations. Whether you have broken windows, or an undesirable yellow kitchen the 203k Streamline gives you up to $35k in remodeling funds to update/remodel and fix the health and safety issues. You can even get new appliances with the funds as well. You receive these funds in addition to your purchase loan it’s all included in one low 30 year fixed rate loan. The 203k Streamline loan is an FHA loan and is not meant to fix structural issues, it’s meant for more cosmetic items. But cosmetic covers a wide variety of things including electrical problems, appliances, countertops, cabinets, carpet, paint, roofing, air conditioning units and the like.
The 203k Standard loan does the bigger jobs. Maybe you want to add a bathroom or a bedroom or garage. Those items are structural in nature but they can be handled by the 203k Standard loan, and again the repair funds are added to your purchase money loan as well so it’s all in one 30 year fixed rate low rate.
All the repairs and remodeling projects are done after escrow closes, so you can buy the home in as-is condition. It’s one of the only loans available that does this and in our current real estate market, the 203k loan is gaining in popularity and is helping cash strapped home buyers acheive their dreams of owning a home.
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