FHA 203(k) Loan
If you are interested in buying a residential property that requires renovations or repairs, you might look into getting a Federal Housing Administration (FHA) 203(K) home loan. These loans have enabled numerous people to purchase homes and make the improvements they need. Whether you are a resident of Winchester, Leesburg, or Stephens City, Virginia, this sort of loan could allow you to refurbish your property.
Exploring the FHA 203(K) Loan
Buying houses that are commonly referred to as “fixer-uppers” has become exceedingly popular in recent years. When you know how much it can cost to renovate this type of home, you might be surprised by the actual expense involved. Even if you decide to move forward and take on such a project, you might have difficulty getting a loan. Unfortunately, numerous lenders will not extend a loan for a house that may be regarded as uninhabitable.
This is what makes an FHA 203(K) ideal for people interested in fixer uppers. FHA 203 (K) loans are backed by the federal government. Their purpose is enabling people to buy homes that will require extensive repairs. The loans may also be used to purchase older homes.
If a home requires a new kitchen or living room in order to be habitable, this sort of loan can provide the funds to buy or refinance the property. A home that requires remodeling can also fall into this category.
Qualifying Repairs via the FHA 203 (K) Program
The necessary repairs and renovations need to meet the guidelines of the program. Some of the repairs that can qualify include some landscaping, structural repair work, and installing a new garage. Other renovations that may qualify a home include adding or making improvements to patios and decks. Bathroom and kitchen remodeling are also qualifying factors under this program. Other necessary tasks that may enable you to obtain such a loan are repairs or installation of an HVAC system, plumbing, or flooring in your home. You might even be able to install a new addition or new siding with the money from an FHA 203 (K) home loan.
What Property Is Eligible?
Not every type of property can make you eligible for this kind of loan. If you own a property that can hold one to four families, you may be able to get an FHA 203 (K) loan. You might also qualify if the home you wish to buy or the home you currently own was demolished, but a certain amount of the foundation remains intact. Another factor that could qualify you is if you are planning to move your home to a different location. Co-ops are not eligible properties for this program, but some condominiums may be.
Getting an FHA 203 (K) Loan
You might be qualified to receive an FHA 203 (K) home loan. Talk to a representative of Homespire Mortgage to determine your eligibility. We proudly serve the residents of Winchester, VA, along with the surrounding areas, including Round Hill, Stephenson, and Leesburg.
Contact us today with all your mortgage and refinancing needs!