Another great feature of FHA 203K Renovation loans is that the loans will include extra funds just in case the planned renovations end up costing more than anticipated.FHA 203K Renovation loans may be approved for up to 110 percent of the home's future value and the scheduled work must be completed within 6 months of the loan's closing date.Whether a current homeowner wishes to renovate his current home or a buyer wishes to get his dream fixer-upper, a 203K Renovation loan is an excellent choice to help get work underway.
A new home marketed as a "fixer-upper" might not qualify for a traditional mortgage, so a buyer might need to consider a North Carolina FHA 203K Renovation loan to secure a property.
Banks often won't approve a loan if a home isn't habitable or requires significant repair, but with a 203K loan, the repairs are built into the loan amount.
The amount granted by the bank for a 203K loan is based upon the future value of a home after repairs are complete.
Traditional mortgages aren't always approved for properties that require significant work and renovation.
The North Carolina FHA 203K Renovation loan makes it easy to obtain authorization to purchase a home in poor condition.
However, this type of loan is also appropriate for a property that doesn't need major work and only requires modest remodeling and improvements.
When applying for an FHA 203K loan, Henderson borrowers should be prepared to wait a little longer on closing than traditional mortgage loans.
Sometimes a seller might be impatient and may want to close on a loan quickly, so a buyer must be prepared to convince the seller to wait just a little longer than usual for loan approval.
Despite this drawback, Henderson, North Carolina renovation loans do offer many additional features not regularly seen in traditional mortgage loans.
Some of those benefits include: - Small down payment options - Option to roll closing costs into the loan - Approval for minor or major renovations One of the best features of a North Carolina 203K loan is that a buyer may borrow against the future value of the property, based upon the expected improvements and renovation.
For a buyer investing in a distressed property, this offers a swift option for building equity in a newly purchased home.