fha 203k rehab financing
I want to purchase a fixer upper home in a historic neighboorhood. Is the FHA 203k Rehab Loan a good idea?
My girlfriend and I would like to purchase a traditional, 112 year old, single family home in a historic St. Louis City neighborhood for $125K. It is a bank owned property that needs work, but is surrounded by an entire neighborhood of historic homes that have been completely renovated or scheduled to be. It is also located a block from one of the oldest, largest and nicest city parks in St. Louis. In addition, the area is home to growing condo, loft and business districts. The home does need work to bring it up to date (kitchen, bathrooms, master, floor refinishing, fixtures, etc.) but the structure itself is in very good condition. I have just learned of the FHA 203k Rehab Loan and wanted to know if it were a good source of financing since we do not have $60-70K to drop into the home. Also, what will the financing cover? Does it cover items like upgraded counter tops, appliances, lighting, fixtures, etc.?
That sounds good as long as you’re planning on living in the house (not buying to flip or rent). HUD gives loans (FHA loans) for first time home buyers to get into a home to live in.
It will cover all kinds of stuff! Counter tops, fixtures, flooring, roof, foundation repairs, siding, paint, etc. Even updating bathrooms that are not broken!
FHA 203k Rehabilitation loans
