Top 5 Reasons Why Home Buyers Should Use A FHA 203k Rehab Loan To Purchase Their Next Home
It occurs to me that a lot of home buyers want to find a home they can just settle into and live. That’s fine, and for a simple situation like that, a conventional or FHA purchase loan is perfect.
Then there’s the specialty group which seems to be a lot more plentiful these days. I like to call them my FHA 203K Rehab Loan kids. They are somewhat younger and they have a knack for finding a fixing up stuff. This includes tinkering and just figuring out how to make things better. I’m not sure if parents taught them how to do more by tinkering or instilling a sense of motion, (As in constantly in motion) but they like to find and fix things. Which brings me to the reason using a FHA 203k Rehab Loan is a good idea for your next home purchase.
Here’s 5 Good Reasons To Use A FHA 203k Rehab Loan For Your Next Home Loan
- You find a house that is not able to be lived in; what is called “uninhabitable”. You are not going to get a normal or conventional loan on the property because there is no value to it or the “as-is” value is worthless. For any lender in their right mind, lending on that kind of property is way too much of a risk. Seriously, how would they get their money back if the borrower defaults? They wouldn’t get any return on their investment. With a FHA 203k Rehab Loan, that’s an issue that gets cared for up front!
- There are always issues with fixer uppers that arise down the line. Using a conventional loan leaves you exposed to the nickel and dimes that will ultimately be needed to do future repairs. (It’s more like thousands of dollars) Using a FHA 203k Rehab Loan can help make those issues a thing of the past by taking them off the table or calendar of repairs that will most likely be needed. The FHA 203k Rehab Loan is designed to get that out of the way right away.
- Cheaper now vs. Expensive later. Think about how much it costs to repair a roof. Just the repair later on could be in the thousands. If you finance it through a consumer finance deal and can’t pay the “special terms” that offer 90 days same as cash kind of deals that are out there, you are laden with heavy interest. On a FHA 203k Rehab Loan, the interest stays lower to where you’re talking about the difference between fix now with FHA 203k Rehab Loan and maybe pay $50/mo more versus financing later with the larger interest and pay more like $200-$300/mo. It just makes economic sense.
- Equity anyone? ANYONE? What’s the difference between the appraised value of a cheap home versus the finished value? Could be huge. Think about it, you find a cheap house that needs some fix up, you get a FHA 203k Loan to get the work done needed, and then have it appraised. Guess what? The value will have gone up substantially in many cases. Remember, you picked this piece of junk up for almost nothing. (This depends on your negotiation skills of course) Now after using a FHA 203k Rehab Loan to get it fixed up, the new value will most likely have increased a lot. I know of people that could have sold their house the day they moved in just because of that major increase in value.
- When do you want that dream home? If you have a family and a busy work schedule, you do NOT want to be moving into a construction zone. Just not fun. You get to move into a home that is fully project completed. The professionals helped make it happen and it ends up looking like one of those “fix it up” shows from HGTV. What a relief to know your dream home is waiting.
The bottom line is, a FHA 203k Rehab Loan can help you get a dream home with some value in place that will allow you piece of mind in what you will hopefully have as a residence for many years to come without all the headache of the constant fixing. Sure you can do smaller projects to enhance, but let a 203K loan help really drive the main project and get the house finished.
Nevada FHA 203k Loans With No Lender Overlays
If you are a home buyers of a fixer upper in the state of Nevada, Michael H. Kaleikini is known as The Rehabman of Nevada. Michael Kaleikini, the author of the above article, is a 15 plus year mortgage industry veteran and is a commercial and residential mortgage lender with no overlays. By no overlays, it means zero, nada, caput, zilch mortgage lender overlays. Michael Kaleikini is known in Las Vegas as the under 600 FICO Lender. Michael Kaleikini has closed more FHA 203k Loans in the State of Nevada for FHA 203k Rehab Loan Borrowers with credit scores of under 600 FICO than any mortgage broker, banker, or mortgage banker in Nevada mortgage history. If you are a home buyer in Nevada and need any FHA Loan with no lender overlays, Michael Kaleikini is your man!!! Michael H. Kaleikini can be reached at 720-902-3120 or email The Rehabman Of Las Vegas at firstname.lastname@example.org.