203(k) Mortgage explained

FHA loans are categorized by how the Federal government insures the loan. 203k is used when a buyer wants to roll some repairs into loan. Generally the buyer has to pay a inspection fee for draws on the loan as work is completed.

From Hud website:

203k Rehabilitation Mortgage Insurance

Streamline 203(k) Mortgage

The “Streamline”(K) Limited Repair Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. More…

203(k) Mortgage

The Section 203(k) program is HUD’s primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. To find out how you can become a 203k consultant, readHUD Mortgagee Letter 00-25 and How to Become an Approved 203k Consultant.

See our mortgage calculator for estimating your loan cost.

About Nathan Neely

Nathan Neely is ranked in the top 1% of all agents on Trulia! Here is his quote: "My name is Nathan Neely, and I have been putting smiles on people's faces by finding the perfect home for over ten years. The best part of my job arrives each time I hand over the keys to an excited buyer, and this huge smile and glimmer in his/her eyes appears."

mortgage, Real Estate, Uncategorized

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