When buying a house that needs repair or modernization, homebuyers usually must follow a complicated and costly process. However, Section 203(k) offers a solution that helps borrowers insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property.
A 203(k) Rehab loan is a great option for individuals looking to purchase and renovate a home in one transaction. This loan can help buyers confidently decide to purchasing a property despite its current conditions. It also allows buyers to potentially save money on closing costs, as they can avoid the need for a separate loan for repairs.