FHA 203K loans are great for borrowers who are looking to refinance and also for purchases. I wanted to use this blog, and the next few posts, to show you examples of how you can use the fixer upper loan for certain situations.
A customer of mine who has owned her home for the last 4 years decided to contact me about adding on some square footage. See in her community there are many homes that have 2 levels and the average square footage was around 2,000 square feet. When she came to me her home had 1,050 sq ft and only one bathroom. She asked me for a solution and I explained to her how a FHA 203K rehab loan worked and how it could benefit her and her daughter. Using this type of loan we were able to have a contractor put a bid in for $38,000 to double the square footage of her home and add on an additional bathroom. She only had a rancher and now her home has a second floor and its has increased the value by almost $75,000.
Yep, its amazing- by doubling the size of her home, adding on a bathroom, giving her a great interest rate (5.5%) and doing it all with a one close mortgage my borrower was able to transform her property and her way of life. Its all because of the FHA 203K Rehab loan. Email or call me to discuss how this FHA loan can help you to do the same.