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The FHA 203K Program Can Be Perfect for First Time Home Buyers in Illinois, Wisconsin or Minnesota
By: Madison Mortgage
One problem facing a lot of new buyers is finding a nice home, in a good area, at an affordable price. Out of these three criteria buyers usually find a home that matches only two of the three. Often times people will find a home that is in their price range in a good place but it is need of serious work. With a 203K loan, a licensed contractor can inspect the home and prepare a bid to make repairs and /or improvements to the home. If the estimate is $35,000 or less then it is possible to get streamline 203k loan.
The first step for the borrowers would be to get pre-approved for the home loan under FHA guidelines. Next they would need to find a home that is priced below their price range. After talking to an appraiser and contractor the couple, along with the mortgage company, can determine if the purchase price plus the repairs are still within the buyer’s budget. Then the lender can move forward with approving the loan.
The money for the repairs is placed in an escrow to ensure the work is completed before paying the contractor. This is done to protect not only the lender but also the borrower from unscrupulous tactics.
Some of the repairs and improvements that can be made to a home are roofing, upgrade HVAC, replacing electrical and plumbing parts, painting, floor replacement and new appliances.
Visit our FHA 203k page for detailed program information:
For additional information or to see if you qualify, contact me below or apply online!
NMLS ID #248526
NMLS ID #1016
Toll Free: 877-240-5810
Serving Wisconsin, Illinois and Minnesota
Page Updated Last on: Mar 28, 2015