Certainly you have heard about the negative news recently about the real estate market and the surplus of foreclosed homes on the market and Connecticut is no exception. You may be thinking that right now is a great time to take advantage of the low interest rates and purchase one of those foreclosed homes. But the difficulty is that many of the foreclosed homes you have seen are in need of renovations and repair, you can't live in them right now. You don't have the cash to make these repairs and no lender will loan you money on a home you can't live in. Well, there is good news and it comes in the form of the FHA 203K Rehab Loan.
The FHA 203k Rehab Loan is a loan for the purchase and renovation of a property, you can also use it to refinance a property you already own and renovate or improve it. The current state of the property doesn't matter, only what condition the property will be in after the repairs have been made. So an FHA 203k Rehab Loan is a great loan obviously for foreclosures or bank owned homes being sold "as-is".
Some points of interest:
1. You take out just one mortgage that covers both the purchase of the property and the cost of renovations, repairs and upgrades you make. The loan can be amortized over 30 years, making payments affordable for you.
2. Because the loan is an FHA loan you benefit from the low down payment required on FHA mortgage loans of just 3.5% of the total loan amount which based on the lesser of the purchase price and renovations or 110% of the after improved value of the home.
3. There are many different repairs and improvements you can use the loan for. What repairs can you do? Structural alterations and additions, remodel the kitchen or bathroom(s), install appliances, modernize plumbing/heating/air conditioning/electrical systems, roofing, flooring, painting, or make energy conservation improvements. What repairs can you not do? Install a new tennis court, gazebo, or bathhouse, repair or make alterations that allow commercial use, outdoor fire pit or BBQ.
As you can see if you are considering buying a foreclosed or bank owned home in Connecticut that needs repairs or want to make improvements to your own home, the FHA 203K Rehab Loan could be just what you are looking for. Call me (860) 306-8029 to find out how you can use an FHA 203k Rehab Loan can help you to buy your dream home in Connecticut.
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As quoted in the New York Times "A Little-Known Loan Program", and in the Hartford Courant "Moving In:Couple Combining Households Buys In Newington" and "Moving In... New Britain"