FHA 203(K) Loan
When you find a home you love, but it needs a little (or a lot of) work, the FHA 203(k) mortgage could be ideal for your needs. Buying a fixer-upper house can be a great way to get into a pricier neighborhood and help ensure the home fits your taste when it’s completed. As long as this is to be your primary home, this FHA rehab loan could work for you. If the home you have your eye on is in the local Cumberland, MD area, or close by in neighboring areas of PA or WV, you’ll find many homes that could be perfect for you — with funds from a 203(k) loan backed by the Federal Housing Administration.
Defining the FHA 203(K) Mortgage
Many buyers overlook homes that need repairs or remodeling when they’re seeking a new place to live. That’s because it can be a bit scary for some people to take on a home needing renovation. The 203(k) loan is here to make the process financially possible and easier for you to accomplish. When you see that diamond-in-the-rough house at a bargain price, and you imagine how great it could be if repaired—consider the FHA 203(k).
Let’s say you’ve seen an older, vintage-style home that needs a new kitchen or bathroom. The 203(k) can help you borrow the funds to purchase the home and have the renovation done by local experts. Maybe the home you love only needs some new doors and windows—the 203(k) works well for minor home fix-ups as well.
FHA 203(K) Mortgage Allowed Home Repairs
This mortgage allows for a wide variety of home repairs and renovations, including add-ons like a patio, deck, porch, or garage—or making improvements to existing ones. Bathroom and kitchen remodels are also allowed. Even structural repairs are possible with the right FHA 203k mortgage. If the house needs new plumbing or a heating/cooling system, a new roof, new flooring, or external siding, these items can also be taken care of for those who qualify for this helpful home rehab loan. Even partially destroyed houses, stripped down to the foundation, may be eligible.
Eligible Home Types for an FHA 203 (K) Rehab Mortgage
Whether you’re looking for a single-family home or a multi-family home such as a four-plex, you can use the 203(k) mortgage. Some condos in certain approved complexes are 203k-eligible as well. (Housing co-ops are not, however.) Whatever type of house you’re looking at, it must be your primary residence in order to access FHA 203(k) financing. You can also apply for this mortgage to fix up a home you’re already own.
How to Get an FHA 203 (K) Loan
If you think the FHA 203 (k) mortgage might be right for you, Homespire Mortgage can provide additional details and make the application process simple for you. We serve the local areas of Frostburg, MD, Cumberland, MD, Lonaconing, MD, and Westernport, MD from our headquarters in Cumberland. In WV, we provide mortgages in Short Gap and Keyser, and in PA we serve the Bedford areas.