What is the FHA 203k?
First of all, let's agree that a house someone else has lived in is most likely not going to be your style. Whether it's the paint, the carpet or a lack of modern efficiencies, since you didn't design it you're probably going to want to make some changes.
Next, let's consider this: we're all very busy. Work, play, family, volunteering, exercising and other activities keep us busy and pack our nights and weekends - unless you're working nights and weekends in which case you're packing your days. Either way, working on your new house with a DIY plan sounds great and can work out for some, most of us probably want to enjoy life and come home to the home we love, not the house we have to work on.
This is where a home improvement loan like the FHA 203k comes into play. This mortgage option helps you buy the house and roll the costs of professional remodeling right into the same loan. There's no hidden interest rate or additional mortgage you need to take out. You're not borrowing on a credit card ... you're adding value to the house by fixing it up so you can borrow against that after-improved value.
Since it's an FHA loan, you're required to have a 3.5% down payment. Yes, this includes the total of the home purchase and the renovations you're financing, but it's often a more popular option over scraping together the cash for DIY projects. Sure the cable shows make it look easy in an hour-long episode edited for television, but we all know it takes time, skill and work. Hiring a professional and financing the work over the life of the mortgage can help make some seriously amazing home improvements fit into your budget. Get more information
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