FHA 203k - Making Good Use of Renovation Loans in Columbia

Finance Repairs

When showing your clients a home that needs repair or you are looking for a fixer-upper, get some
information on our Federal Housing Administration (FHA) 203(k) renovation loans. These loans are perfect for a bargain hunter who has spotted a fixer-upper or a foreclosure in need of immediate repair, or a client who has found a home that would be ideal if only there were a third bedroom and a second bathroom.

Renovation Loan - Columbia, SC

Our renovation loans provide the money to both purchase the home and finance the home’s renovation in Columbia, SC. With one loan, there is only one application, one set of fees, one closing and one monthly payment. At closing, the house is paid for, and the repair money is put into a special account for disbursement as repairs are completed. Improvements can include anything that adds value to the home, such as a room addition, new carpeting, landscaping, plumbing, roofing or a new kitchen. The loan can also be used for energy-efficiency improvements that qualify for tax credits* under the new stimulus package.

Finance Home Improvements

Another great advantage of a renovation loan is that it provides borrowers a loan based on the increased property value after renovation. But that’s not the only financial upside. The required down payment on a renovation loan can be as low as 3.5%. As a tax deductible first mortgage, the renovation loan will usually feature a lower interest rate than a second mortgage and improvement costs can be spread over the term of the loan. This can prove a bargain because many buyers finance improvements with more expensive consumer credit. Also, the loan can provide financing for up to six months of mortgage payments if the house is not occupied during construction.

Just knowing about our renovation loans may make the vital difference to motivate buyers to purchase. Give me a call today to learn more about how I can advise your clients on the right loan for their needs!

*Always consult your tax advisor for tax information and advice.

Eric Storm - Columbia, SC
Mortgage Lender
803-517-8791

Apply Online

eric.storm@prospectmtg.com

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