Friday, September 3, 2010

Advantages of the FHA 203K Renovation Loan

FHA 203k renovation loan to a borrower to roll the costs of repair and renovation in FHA loans. The repair / renovation is optional upgrades / updates, including: the inside and / or exterior paint, new floors, renovated bathroom / kitchen, improve energy efficiency, landscaping, etc. The process of obtaining and using an FHA 203k loan can be very easy to work with the appropriate loan officer who understands the program, and offers benefits for everyone involved in the transaction.

Benefits to Borrower

- The cost of repairs and renovations are included in loans

- The two objects large and small are welcome

- Only 3.5% on an FHA loan with closing cost credit of up to 6% of the vendor

- Loan amount up to 110% of the value "after improved" Assessment of

- Renovation optional / updates are allowed

- The client can use a consultant to assist in dealing with contractors 203k

- Interest on the loan may be fully tax deductible.

- Allows home buyer who does not qualify under FHA guidelines standard purchase

Advantages for the seller

- Leave the house to sell to more buyers if they do not qualify for a standard loan FHA

- Repairs are included in loans and does not require the seller to make repairs before the closing of the pocket.

- Not to go out and the market as a case of default of an FHA appraisal

Benefits for the contractor

- Up to 30% available for licensing and purchase materials before

- Not having to worry about being paid once the work is done.