Monday, 7 October 2013

Introduction to FHA 203k Loan

The FHA 203K loan for owners, occupants and non-profits is the ideal home improvement loan for a house that needs repairs. The loan which was initiated to aid in the repair and rehabilitation of run down homes is applicable for both - property that you may be planning to purchase as well as repairs to your present residence. Even though it is a government backed loan which is very popular given that many people use it for fixing their houses perhaps it is better to have a knowhow on this. Since most banks won’t lend you money to buy a house without the repairs being completed and you couldn’t possibly repair something that you don’t own, this is especially where one such home improvement loan comes to the rescue.
One of the basic criterions for getting the FHA 203k loan approved is that your property can be anything from a town home or condominium but it must be a one to four family structure. Borrowers seeking this loan cannot own more than seven units within a two block radius of the structure they wish to get the loan sanctioned for. While the loan cannot be used for major structural repairs, it can be used for interior rehabilitation with a major contractor looking after the repairs. The minimum amount is 5,000 $ while the maximum amount is 35,000 $. Remember take the advice of your consultant or plan reviewer so that you don’t underestimate the costs since you cannot raise your home loan amount later on.
You can turn to your Department of Housing & Urban Development-approved housing counselling agency for more information on the FHA 203k home improvement loan or log on to for exploring a plethora of financial services available for your aid.

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