What if you find a short sale or foreclosure in Salt Lake City and decide it would be a great investment. It needs work though, lots of work. You know that once the property has been improved, the value of the home will be much more than the cost of the improvements. There’s only one snag. You don’t have the money to make the improvements once you own the home.
Enter FHA 203(k) rehabilitation loan.
If you qualify for this loan, you can finance not only the current cost of the property, but also the improvements you want to make. In this loan, FHA uses the projected value of the property with the work completed to determine the mortgage amount loaned.The Terms of the FHA 203(k)
You can make most any repair to the property that does not require plans, consultants, engineers, and architects. No moving load-bearing walls, no structural damage repairs, no landscaping and no work requiring longer than six months to perform.
Other than that and a few more minor stipulations, you can use the money for most any other project including:
Honesty, it’s one of the best loans I’ve seen in a long time. What a great way to really put some pride into your new house, while having the money to do it right up front.
If you are interested in doing a loan like this, let me know. I’d be happy to refer you to a local lender with experience with 203(k) loans.
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