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The Truth about FHA 203k Loans

The FHA 203k loan program provides home buyers the opportunity to buy and fix up a property, without exhausting their personal savings.  Home buyers can purchase a property and include whatever costs to make required repairs or desired updates, or to fully renovate the property, all into one simple thirty-year fixed loan. The renovation costs just get added onto the purchase price of the home. The works starts after the purchase of the property, using the money that the bank has set aside.

The appraisal or the maximum mortgage amount is based on the lesser of 1) the as-is value + the cost of rehab work, or 2) 110 percent of the after-improved value of the property.

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March 29, 2013 - Posted by | Uncategorized | , , , ,

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