203k Benefits to Buyers/Borrowers
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■Renovate home with little/no additional out-of-pocket expense
■Low down payment (3.5%)
■Combine purchase/refinance + rehab funds into one low-interest, tax-deductible mortgage which is based on the improved appraised value
■Include mortgage payments into 203k if home is not livable during renovations
■Submit a strong purchase offer if presented properly to seller
■Buyers face less competition from other buyers to purchase fixer-uppers, foreclosures or older homes that are outdated
■Better opportunities for “good deals” on home purchases
■Ability to purchase properties that may not meet FHA standards and complete the repairs/improvements AFTER the home is purchased.
■Select from a larger selection of properties for sale (in any condition), including condos, townhouses, mixed-us, multi-family, single-family dwellings and those that do not currently meet FHA standards
■When offer is presented properly to seller, 203k offers may be advantageous in a competing offer situation as the seller does not have to fix-up or repair the property but instead allow the buyer to include these items into their 203k mortgage and complete the improvements after closing using the buyer’s own style and design
