Paying for HUD Home Repairs with an FHA 203(k) Loan
February 17, 2008
HUD foreclosure homes are sold “as-is.” However, borrowers can take out additional money for repairs by applying for an FHA-insured 203(k) home loan. Most traditional mortgages will only loan up to the amount of the home’s current market value (i.e. if the home is worth $100,000, they will loan up to $100,000). The FHA 203(k) loan, on the other hand, will lend additional money for repairs. FHA determines the amount of the loan by taking the post-repair market value into consideration (i.e. if the home is worth $100,000 now but will be worth $120,000 after repairs, they will lend up to $120,000).
Learn more about home repairs with the FHA 203(k) loan here: The Secrets of Buying HUD Foreclosures.
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