At Primary Residential Mortgage, we know that many home buyers are interested in purchasing homes with water- and energy-saving features. But many times, it’s hard to find the right ‘green’ home. That’s why we offer the 203(k) home loan program. With this flexible financing option, you may be able to finance not just the purchase price of a home, but also the cost of needed and/or wanted repairs. Many home buyers use this flexible loan program to ‘go green.’
If you qualify for the 203(k) loan program, you can opt for a Standard 203(k) loan or a Limited 203(k) loan. With a Standard 203(k) loan, the maximum amount you can borrow is generally the current property value plus the cost of repairs, up to certain limits. With the Limited 203(k) option, the maximum amount of money you can borrow is the home’s purchase price plus $35,000.
- Here are three great benefits of 203k home loans:
- There’s only one loan for both the purchase and renovation of a home. If you depend on your savings to fund and complete the repairs, you might find yourself running out of money quickly. An FHA 203(k) loan helps you avoid depleting your savings while the house undergoes repairs and upgrades or having to stretch the renovations out over a very long period. Both the purchase cost and renovation cost (up to certain limits) can be rolled into one convenient loan.
- You can purchase a fixer-upper and start work on it immediately. You don’t have to bypass a home that needs upgrades and repairs. You can purchase a fixer-upper and start renovations right away.
- You’ll get a low down payment. This type of loan has a low down payment of 3.5 percent.
Want to learn more? Give us a call today at (206) 353-7167 At Primary Residential Mortgage, we can help you explore all of your financing options!
