203(k) Loans Can Be Beneficial


Loans : 203(k) Loans Can Be Beneficial	Homepage \| Add to Favorites

Recommended Sites

Related Links

Informative Articles

Avoid Getting Ripped Off From Payday Loans
Payday loans can, at first, seem like the long awaited answer to all your financial problems. Payday loans offer customers the opportunity to be pre-approved no matter what their credit history and receive quick, easy, cash loans prior to their...

Cheap Personal Loans
If you are looking for cheap personal loans then you'll probably find that secured loans from the internets top lenders will have the lowest interest rates available. The reason for this is that when you use your home as security or collateral...

Home Loans SA – best tips
Your home loan will most probably be the biggest investment you'll ever make, and you'll want to be use to you're making the write choices before you decide to purchase your own home. Firstly, one of the most important points to consider when...

Instant Cash Loans - Avoiding High Fees
You have heard the stories of people taking out a cash advance only to owe more in finance charges than in principal. You can't help but ask - how did this happen? Will it happen to me? You can avoid such situations if you shop wisely for a cash...

The Ins and Outs of Loans for Military
Under the microscope loans for military really are different from civilian loans. Some things are the same such as your application must be approved, you still pay the loan back in an allotted amount of time, and you still have a set interest rate....

203(k) Loans Can Be Beneficial

203(k) loans can be very beneficial. Learn how to use only one loan to both finance and repair real estate.
It doesn't matter if you are new to the real estate investing business or have been a real estate investor for years, one thing that you will eventually encounter is the need for capital to either buy property that needs repairing or repair property that you already own. The problem is that most lenders do not want to finance borrowers for the purpose of buying or repairing property that are fixer uppers or handyman specials. This is because lenders often see this type of property as an unstable investment. Even if a borrower does find a lender that will finance them for property that is in need of heavy repairs, the loan amount will be based on a percentage of the current value of the property. Unfortunately, this amount is usually not enough to do all of the repairs or work that is needed.
A simple solution to this problem is the FHA 203(k) loan. The FHA 203(k) is a loan that is secured by the Federal Housing Administration that is used by borrowers for the purpose of fixing up or rehabbing real estate. Some of the advantages of a FHA 203(k) loan are:
1) borrow up to 110% of the after completion value of the property
2) take out one loan to cover a property's purchase price and cost of rehab
3) refinance existing housing
4) finance 100% of the cost needed to improve the property
5) and much more.
To learn more about the FHA 203(k) loan (such as loan limitations, property qualifications, etc.) contact your local FHA approved lender or visit the HUD website at http://www.hud.gov/offices/hsg/sfh/203k/sfh203kc.cfm.
About the Author
Daniel Cobb lives in Chicago, Illinois and is a former realtor who is now a real estate investor. He is also author of the e-book, "Complete Guide To Investing In Real Estate Through Government Scavenger Sales" - an informative e-book on how to purchase real estate through government auctions.